Debate over new CEO at Prabhu Bank: Paudel's cooling-off period doesn't match, Pokharel is difficult to approach, concerns that Rimal and Lamsal can't do it

After criminal charges were filed against Prabhu Bank CEO Suman Sharma, a debate over a new CEO has begun at the bank. Even though he was released on bail, the question has arisen whether a CEO who learned only 5 days later that an arrest warrant had been issued against him can still work. If Nepal Rastra Bank gives the green signal, the board of directors is preparing to bring in another CEO. For this, it has been found that two directors are fully engaged without involving other board members much. It has even been found that one director asked a director of another bank to help arrange a conversation with a potential candidate.

Paudel's cooling-off period doesn't match, Pokharel is difficult to approach

Some senior employees and two directors at the bank had proposed to the chairman that Janak Sharma Paudel be brought in as the bank's CEO. But he is a director at Standard Chartered Bank. The cooling-off period prevents appointing a director directly as CEO. Since a CEO must be appointed within 3 months of the vacancy, there is no situation where he can resign and wait 6 months.

Similarly, directors had also proposed approaching Suman Pokharel, currently Deputy CEO of Global IME Bank, for the CEO position. But directors claim it is difficult to even approach him, saying he is a banker with little interest in Prabhu Bank and does not want to come. Speaking with Artha Sarokar, one director said he had asked a director of another bank to arrange a conversation with Pokharel, but received the reply that it was not necessary to speak to Pokharel.

Arguments that Rimal and Lamsal can't do it

The board is not ready to immediately appoint Raj Rimal, who has about a 10-year gap in banking and is currently Senior Deputy CEO at Prabhu, as CEO. The argument has strengthened in the board that Rimal, who was brought to the bank while the process of filing a criminal case against Suman Sharma was underway, can be made acting CEO for some time but cannot be given the full CEO role.

Meanwhile, Niraj Lamsal is also understood to be eager to become CEO. He has already expressed his intention that if given the responsibility, he will lead the institution.

‘No other suitable candidates who want to come to Prabhu were found; the discussion has turned to resolving Sharma's case’ : Director

After not finding other suitable candidates for CEO, Prabhu Bank has reached the conclusion that it should focus on resolving Suman Sharma's case. But since that case belongs not to Prabhu but to another bank, Prabhu is not in a position to do anything. Directors say further discussion on this matter will be held on Monday.