Prabhu Bank Dinesh Dangol Arrest in Banking Offense Case
18th March 2026, Kathmandu
The Central Investigation Bureau (CIB) of Nepal Police has arrested Dinesh Dangol, the Head of Corporate and Project Finance at Prabhu Bank Limited, in connection with a major banking offense case.
Prabhu Bank Dinesh Dangol
The arrest, made on Chaitra 2, 2082, follows an intensive investigation into the alleged misappropriation of loans and the misuse of banking licenses involving high-level officials and related entities.
Details of the Arrest
Dinesh Dangol, a 50-year-old resident of Lalitpur Metropolitan City-27, was taken into custody from Thapathali, Kathmandu. The operation was led by a specialized team from the CIB following an arrest warrant issued by the Patan High Court.
Dangol is a key figure in the credit department of Prabhu Bank, and his arrest is linked to evidence suggesting his role in facilitating irregular loans that violated the Nepal Rastra Bank Act and prevailing banking regulations.
Allegations of Loan Misuse and Diversion
The primary focus of the investigation is the alleged diversion of funds through Prabhu Management Pvt. Ltd. Investigators claim that loans intended for specific corporate projects were instead funneled through “super-agents” and other layers to bypass central bank oversight.
Key Investigative Findings include:
Advance Loan Misuse: Allegations that the bank provided an interest-free advance of approximately 270 million NPR to Prabhu Management, causing a direct loss to the bank.
Super-Agent Creation: The creation of an unauthorized intermediary layer for remittance transactions, allowing vested interests to utilize bank funds for non-banking purposes.
Diversion to Affiliates: Loans were allegedly redirected to companies including Prabhu TV, Hello Paisa, and various medical colleges and real estate projects.
Broader Investigation: CEOs and Chairmen
The arrest of Dinesh Dangol is part of a wider crackdown on the Prabhu Group leadership. Several other high-ranking individuals have been under the radar of the CIB:
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Ashok Sherchan (Former CEO): Previously investigated for causing losses to the bank through unauthorized loan approvals.
Mani Ram Pokhrel (Deputy CEO) and Riwas Shrestha (Chief Risk Officer): Both were taken into custody during the initial phase of the investigation for violating banking offense laws.
Devi Prakash Bhattachan (Former Chairman): Arrested in connection with defrauding over three dozen cooperatives of approximately 1 billion NPR through remittance mismanagement.
Impact on the Banking Sector
The Prabhu Bank Dinesh Dangol arrest has sent ripples through the financial community of Nepal, highlighting significant gaps in internal governance.
Governance Crisis: The involvement of department heads, CEOs, and chairmen suggests a systemic failure in the checks and balances system of the bank.
Regulatory Pressure: The Nepal Rastra Bank (NRB) has intensified its directed loan monitoring to ensure that senior officials cannot easily bypass automated risk management protocols.
Institutional Accountability: This case marks one of the few instances in Nepal where an entire C-suite of a commercial bank has faced simultaneous legal action for white-collar crimes.
Legal Status and Next Steps
Senior Superintendent of Police Shiva Kumar Shrestha, spokesperson for the CIB, stated that the bureau is currently analyzing digital evidence and transaction logs recovered from the central office of the bank. Dangol is being held under the Banking Offense and Punishment Act, 2064, while the court determines the duration of his remand for further questioning.
The entities involved in this case include Prabhu Bank Ltd as the source of credit, Prabhu Management as the intermediary, the Central Investigation Bureau as the lead agency, and the Patan High Court as the judicial authority.
Conclusion
The arrest of Dinesh Dangol underscores the commitment of the CIB to tackling complex financial fraud within the top-tier banks of Nepal. As the investigation unfolds, it is expected to lead to stricter compliance mandates for project finance and corporate lending across the industry. For stakeholders, this case serves as a stark reminder that technical expertise does not exempt bank officials from legal accountability.
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