Kathmandu. Amid internal disputes, legal investigations and weak financial indicators, the leadership of Prabhu Bank has been handed over to Suman Sharma. Sharma has been appointed as the Chief Executive Officer (CEO) of the bank which has been in a state of turmoil for months. But this appointment is not only a formal post, but also the beginning of a difficult journey to get the bank out of the crisis. <\/p>\n
The leadership of Prabhu Bank, which was entangled in the selection of the CEO for a long time, was going through a crisis. The bank’s decision-making process was weakened after the investigation into the banking fraud of the then CEO Ashok Sherchan started. During this period, the regulator’s interest increased and there was instability in the bank. After this, Chief Credit Officer Neeraj Lamsal was given the responsibility of acting CEO, but there was no clarity on the permanent leadership. <\/p>\n
Against this backdrop, veteran banker Suman Sharma has been given the command of the bank. Sharma has more than three decades of banking experience and has previously served as CEO of Sunrise Bank and Machhapuchchhre Bank. He has also served in leadership positions in NMB Bank and Global IME Bank. <\/p>\n
But the list of challenges for the new CEO is long. As of mid-January of the current fiscal year, the non-performing loan of Prabhu Bank has reached 7.94 percent, which is a significant increase compared to the previous year. The deteriorating quality of loans is considered to be the most serious problem of the bank. <\/p>\n
Profits are also under pressure. In the second quarter of the current FY, the bank’s net profit has decreased by 24 percent to Rs 1.01 billion. The impact of a sluggish economy and credit risk is clearly visible on bank earnings. <\/p>\n
Apart from this, the shadow of the dispute related to the Prabhu Group in the past has not yet lifted on the bank. Employees and banking analysts believe that investigations, arrests and court cases have damaged the bank’s institutional image. Restoring customer trust will be another big challenge for Sharma. <\/p>\n
Issues of political influence, group interests and internal balance of power have also become sensitive within the bank. Strengthening the business decision making system by keeping the bank away from such pressure is considered to be the main test of the newly appointed CEO. <\/p>\n
According to analysts, Sharma’s success or failure will depend more on how strong debt discipline, risk management and corporate governance can be made than on paper reform. His leadership will now answer the question of whether or not Prabhu Bank can land safely in the midst of controversy and pressure.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Amid internal disputes, legal investigations and weak financial indicators, the leadership of Prabhu Bank has been handed over to Suman Sharma. Sharma has been appointed as the Chief Executive Officer (CEO) of the bank which has been in a state of turmoil for months. But this appointment is not only a formal post, but […]<\/p>\n","protected":false},"author":16,"featured_media":286317,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45117,45031,45159],"tags":[],"class_list":["post-286319","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bank-finance-en","category-banner-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286319","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=286319"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286319\/revisions"}],"predecessor-version":[{"id":286320,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/286319\/revisions\/286320"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/286317"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=286319"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=286319"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=286319"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}