Lumbini Bikas Bank Limited Issues Urgent 7 Day Final Notice for Loan Repayment and Collateral Auction
23rd June 2026, Kathmandu
Lumbini Bikas Bank Limited has officially issued a seven day final notice to defaulting borrowers, guarantors, and collateral providers regarding long overdue loan obligations.
Lumbini Bank 7-Day Notice
The urgent foreclosure notification was published in a national daily newspaper on Asar 9, 2083. According to the bank administration, the listed borrowers failed to clear their outstanding principal, accrued interest, penalty charges, and associated legal fees despite receiving numerous verbal reminders, written notices, and prior public service announcements. Consequently, the bank has officially started the process to liquidate mortgaged real estate and movable properties through a public sealed bidding auction, strictly following the provisions of the Bank and Financial Institutions Act of 2073.
Review of Major Default Cases and Mortgaged Assets Scheduled for Public Sale
The foreclosure notice explicitly outlines distinct default cases tied to different branch locations, identifying the specific assets up for public bidding.
The first major default case involves Thrift Multipurpose Company Private Limited, which secured commercial financing through the bank’s Gongabu Branch in Kathmandu. Due to prolonged contract violations, the bank is auctioning ten Tata passenger buses registered under the corporate borrower’s name with the Transport Management Office in Lumbini, with registration codes running from Lu 2 Kha 4119 to Lu 2 Kha 4128. The second default case names Ram Sundar Duwal, associated with the Bode Branch. The collateral for this account comprises a residential plot and building spanning 198.69 square meters on Plot Number 1128, located in Bhaktapur Municipality Ward Number 4, which is officially registered under the name of Parbati Duwal.
Bid Submission Procedures, Deadlines, and Evaluation Timelines
Prospective institutional and individual investors must follow a structured bidding process to buy these distressed assets on an as-is, where-is basis.
Interested participants must buy the official bidding forms from the designated branch offices for a non refundable fee of five hundred Nepalese Rupees. The final deadline for submitting sealed bids directly to the respective branches is set for Asar 15, 2083, during standard government office hours. The bank’s internal recovery committee will then open the sealed bids on Asar 16, 2083, at exactly 3:00 PM inside the relevant branch premises. Successful highest bidders may receive a maximum window of thirty days to deposit the remaining purchase balance once the central management board approves the bid.
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Severe Credit Blacklisting Warnings and Additional Legal Repercussions for Defaulters
The development bank has issued strong warnings to all named borrowers, company directors, and personal guarantors concerning the long term legal impacts of ignoring this final notice.
If the concerned parties fail to settle their total debts within the seven day window, the bank will forward their profiles to the Credit Information Bureau of Nepal for immediate blacklisting. This status completely blocks individuals and companies from getting any future loans or opening new accounts across the entire domestic banking network. Furthermore, if the money raised from the asset auction falls short of covering the full debt, the bank warns it will take further legal action to seize unpledged personal assets, using all recovery paths allowed under Nepali law.
Risks of Value Depreciation and Finality of Auction Pricing
The formal recovery announcement outlines strict conditions regarding the final sale values, protecting the bank from potential post auction disputes.
Because the auction operates under market driven bidding structures, properties may sell below their initial corporate valuations if current market demand is low. The bank emphasizes that defaulting borrowers and guarantors lose the legal right to challenge or file complaints about the final auction prices once the bids are approved. This legal setup underlines why it is critical for defaulting parties to contact the bank immediately to settle their accounts and save their pledged family homes or business vehicles before the auction closes.
Protecting Depositor Interests through Institutional Risk Mitigation
Running consistent and transparent collateral liquidations plays a vital role in keeping the wider financial sector healthy and stable.
As a Class B financial institution licensed and regulated by the Nepal Rastra Bank, the bank is legally required to safeguard the savings of its depositors by aggressively recovering bad commercial loans. Letting non performing loans sit on the balance sheet locks up valuable capital, limits the bank’s ability to issue fresh credit to healthy businesses, and hurts overall profitability. Through these structured foreclosure processes, Lumbini Bikas Bank Limited successfully removes bad debts from its books, returns capital to the active financial pool, and supports the overall economic stability of the nation.
For More: Lumbini Bank 7-Day Notice
