Prabhu Bank rejects media reports on its management, loan files

KATHMANDU: Prabhu Bank on Monday issued a press statement rejecting recent media reports about the institution, its board members, officials and management, calling the coverage one-sided, exaggerated and baseless.

In a press release signed by the chief executive officer, Suman Sharma, the bank said it was 'seriously concerned' that news items were published without adequate factual verification and that it 'completely refutes such published and broadcast malicious news' which aim to create confusion about the bank’s corporate reputation, the dignity of individuals, public trust and regulatory oversight.

The bank said routine administrative actions — including employee transfers, adjustment of responsibilities, loan recovery procedures and collateral auction notices — are lawful and standard banking practices, and that reporting these processes out of context, without official confirmation, runs counter to factual journalism and professional codes of conduct.

Addressing past inquiries into specific loan files and matters pending before competent courts, Prabhu Bank said it continues to implement risk management, internal controls and corrective measures in full compliance with prevailing laws and regulatory rules, and that it is strengthening systems to prevent future shortcomings.

The statement said all decisions by the board of directors and executive management comply with directives from Nepal Rastra Bank and applicable legal standards.

Prabhu Bank urged media outlets to verify facts before publication, warning that unverified reporting can create negative impressions across the financial system, and asked depositors, shareholders and other stakeholders to rely only on official bank notices and credible sources for accurate information.