Kumari Bank Property Auction Notice for Collateral Assets
16th March 2026, Kathmandu
Kumari Bank Limited has officially released a public notice for the auction of various collateral properties, marking a strategic move to recover outstanding credit facilities from defaulting borrowers.
Kumari Bank Property Auction
As part of its loan recovery process, the bank is inviting sealed bids from interested individuals and institutional investors. This auction encompasses a range of residential, land, and commercial assets located across key districts, including Kathmandu and Bara.
The Sealed Bid Auction Process
The auction is conducted via a confidential sealed bid system to ensure transparency and fair competition. Potential buyers must prepare their offers meticulously, as the bid process is binding and subject to strict institutional regulations.
Key submission requirements include:
- Competitive Bid Amount: A formal proposal of the price the bidder is willing to pay.
- Earnest Money Deposit: Proof of a good-for-payment cheque representing the mandatory security deposit.
- Documentation: Comprehensive identity verification and, in the case of institutions, corporate authorization documents.
Important Deadlines and Locations
The window of opportunity for this auction is limited. Interested parties must act within 35 days from the date of the public notice.
Submission Deadline: All bids must be physically delivered to the bank’s Loan Recovery Department within the 35-day window.
Submission Location: The Loan Recovery Department of Kumari Bank, located in Bagbazaar, Kathmandu.
Inspection Period: Before bidding, prospective buyers are strongly encouraged to contact the Loan Recovery Department to arrange for a site visit of the specific properties. Verifying the physical state and legal standing of the collateral is the responsibility of the bidder.
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Assets Under Auction
The collateral properties span several regions, reflecting the diverse credit portfolio of the bank. The list of borrowers whose properties are now under the auction hammer includes individuals such as Dhananjaya Kumar Mahato, Ram Prasad Budhathoki, and others, as well as entities like Prathama Colony Pvt. Ltd. The assets are varied, ranging from prime urban land plots in Kathmandu to commercial properties in the Bara district.
Terms and Conditions for Bidders
To ensure a smooth recovery process, Kumari Bank has set forth clear terms:
Right of Rejection: The bank reserves the absolute right to accept or reject any bid at its discretion without being required to provide a justification.
Finality of Payment: The successful bidder must adhere to the bank’s strict payment schedule. Failure to finalize the purchase after being selected as the highest bidder will result in the forfeiture of the earnest money deposit.
Legal Due Diligence: The properties are sold on an “as-is, where-is” basis. Bidders are expected to conduct their own independent legal due diligence regarding title deeds and outstanding local taxes.
Why Property Auctions Matter
For Kumari Bank, these auctions are an essential tool for maintaining financial health and recycling capital tied up in non-performing loans. For the market, these auctions often serve as a platform to acquire real estate at competitive valuations, potentially providing an entry point for investors who are well-versed in navigating the legal requirements of distressed asset acquisition.
Given the complexity of legal procedures regarding property ownership in Nepal, prospective bidders are advised to consult with a legal professional before submitting their sealed bids.
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