The production house said they and Sharma, who had signed a three film contract with YRF earlier this year, decided to "part ways mutually".
The film will go on floor without Sharma, who is best known for his superhit show 'Comedy Nights with Kapil'.
"We will look forward to working together in future when the time is right," said Ashish Patil, Business & Creative Head, Youth Films at YRF.
The film is a comic-caper and tells the story of three morons trying to rob a bank who pick the worst day possible when everything that can go wrong, goes wrong and how they're inadvertently caught in the crossfire of cops, industrialists and corrupt leaders.
'Bank-Chor' is directed by Bumpy and produced by Patil.
Sharma is yet to comment on the development. The film is slated to release on March 6, next year.