Himalayan Bank Issues Final 35 Day Loan Repayment Notice Warning Defaulters Of Legal Action And Collateral Auction
4th August 2026, Kathmandu
Himalayan Bank Limited has published a final 35 day public repayment notice directed toward defaulting borrowers across multiple regional branches in Nepal.
Himalayan Bank Repayment Notice
The commercial bank has requested defaulting borrowers, personal guarantors, and affiliated business firms to settle all outstanding financial liabilities within 35 days from the official notice publication date.
The total liability includes the remaining principal loan balance, accrued interest, late payment penalties, and applicable administrative expenses.
Himalayan Bank has explicitly warned that failure to clear the overdue credit facilities within the stipulated 35 day window will compel the financial institution to initiate legal proceedings and proceed with the auction of pledged collateral properties in full accordance with the prevailing banking regulations and debt recovery laws of Nepal.
Background On Non Performing Accounts And Loan Defaults
The formal legal notice was issued following persistent default by borrowers despite repeated formal communications, written recovery letters, and verbal reminders from the bank administration.
According to the public announcement, the listed credit clients failed to comply with agreed repayment schedules and breached contractual financial covenants.
When loan accounts remain unserviced for extended durations, banking institutions in Nepal are required under Nepal Rastra Bank guidelines to initiate recovery mechanisms to maintain financial discipline and safeguard institutional stability.
Himalayan Bank noted that defaulting borrowers ignored multiple operational opportunities to restructure or clear their liabilities, leaving the institution with no alternative except formal public recovery procedures.
Branch Locations And Affected Regional Operational Areas
The public notice issued by Himalayan Bank encompasses defaulting clients and associated personal guarantors connected to several prominent branch offices across strategic commercial districts in southern Nepal.
Specific branch offices named in the public recovery notice include:
- Jitpur Simara Branch in Bara district
- Kawasoti Branch situated in Nawalparasi Bardaghat Susta Purba district
- Nijgadh Branch located in Bara district
- Gaur Branch in Rautahat district
- Bypass Road Branch operating in Birgunj within Parsa district
The published directive contains complete identification details for borrowers, corporate entities, personal guarantors, and legal property owners, alongside legal descriptions of mortgaged physical assets and land plots slated for potential recovery.
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Collateral Recovery And Auction Procedures Under Banking Laws
Himalayan Bank emphasized that if the designated defaulting individuals and corporate entities fail to resolve their financial obligations within the 35 day notice period, the bank will move forward with legal collateral recovery operations.
Under the prevailing Debt Recovery Act and banking framework of Nepal, financial institutions possess statutory authorization to seize, manage, and publicly auction pledged fixed assets, land holdings, buildings, and personal security guarantees provided during loan disbursement.
The bank reiterated that legal enforcement and property auction processes will commence immediately upon the expiry of the 35 day deadline without any further individual notices or extension periods.
Urgent Call To Action For Borrowers And Personal Guarantors
The legal announcement serves as a final formal opportunity for listed borrowers, commercial partners, and personal guarantors to settle their credit obligations amicably.
Himalayan Bank has strongly advised all concerned stakeholders to visit their respective branch offices promptly to discuss repayment modalities, clear accumulated interest dues, and fulfill all contractual commitments before formal litigation begins.
The bank highlighted that cooperating within the active notice period allows borrowers to protect their legal credit standing, prevent the public auction of family or corporate real estate assets, and avoid long term legal complications associated with blacklisting by credit information bureaus.
Broader Context Of Non Performing Assets In Nepalese Banking
Managing credit risk and recovering non performing assets remain critical priorities for commercial banks in Nepal amidst evolving macroeconomic conditions.
When financial institutions enforce strict recovery frameworks, it helps preserve capital adequacy ratios, maintain liquidity levels, and protect the broader financial ecosystem.
Himalayan Bank continues to reinforce its operational commitment to transparent credit administration and regulatory compliance while providing structured settlement mechanisms for cooperative clients.
Listed borrowers across the specified branch network are urged to act immediately to ensure complete resolution of their default status before legal timelines expire.
For More: Himalayan Bank Repayment Notice
