The court, however, had granted provisional bail to another former Bihar chief minister Jagannath Mishra on October 25.
Prasad and 44 others, including Mishra, were convicted by a CBI court on September 30, in a fodder scam case involving fraudulent withdrawal of Rs. 37.70 crore from Chaibasa Treasury during 1994-1995.
Prasad was the chief minister of undivided Bihar during the period.
The CBI court had pronounced varying prison terms to the convicted on October 3.
Following his conviction, Prasad was also disqualified as Lok Sabha member.
According to a Supreme Court order, lawmakers convicted for criminal offences punishable with jail term of more than two years stand immediately disqualified from Parliament and state legislatures.