Himalayan Bank Limited Launches Multi Branch Credit Recovery Action with Strict 35 Day Settlement Notice

27th May 2026, Kathmandu

Maintaining optimal asset quality remains a top priority for major financial institutions managing extensive credit portfolios across Nepal. In a coordinated effort to address non-performing loans, Himalayan Bank Limited has issued a comprehensive 35-day public notice targeting numerous defaulting borrowers and guarantors.

Himalayan Bank Repayment Notice

The public notification marks the start of formal recovery procedures against individuals and enterprises that have neglected their repayment schedules. The management has made it clear that regular compliance rules will be fully enforced to safeguard public deposits and ensure banking stability.

Exhaustive Direct Reminders Lead to Final Public Ultimatum

The issuance of this legal warning comes after a long series of internal recovery efforts by various branch managers. The bank has pursued multiple paths to help borrowers regularize their accounts before taking this public step.

According to institutional disclosures, the listed borrowers received numerous verbal reminders and formal written alerts over several months. Despite receiving sufficient warnings and opportunities to restructure or settle their debts, the clients failed to clear their overdue interest and principal. Consequently, the bank has exercised its legal right to publish their details, starting a strict final countdown for repayment.

Two Clear Options Outlined for Defaulting Clients

The formal announcement gives the affected borrowers and their legal guarantors exactly 35 days from the date of publication to resolve their financial liabilities. The bank has outlined two specific paths to avoid immediate enforcement.

Borrowers must either completely repay the entire outstanding loan principal along with accumulated interest and penal charges, or visit their respective branch offices to execute an approved settlement plan. The bank has emphasized that this timeline is strict and non-negotiable for all listed accounts.

Severe Consequences of Non Compliance and Legal Action

Failing to respond to this public notice within the 35-day window will trigger automatic legal and administrative penalties. The bank will move forward with asset liquidation and structural penalties without further delay.

First, the institution will start the process of seizing and auctioning all mortgaged properties to recover the outstanding debt. Second, the names of the primary borrowers, corporate directors, and personal guarantors will be forwarded to the Credit Information Bureau for blacklisting, which will completely bar them from accessing future banking facilities in Nepal.

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Diverse Business Sectors and Listed Corporate Borrowers

The default notice covers a wide range of economic sectors, reflecting the extensive retail and commercial lending footprint of the bank. The listed entities include small shops, agricultural projects, and logistics operators.

Prominent businesses named in the recovery notice include Aakriti Readymade Store, Gayatri Multi-purpose Fish and Agro Farm, and Kishan Enterprises. The list also includes various independent transport operators and small to medium enterprises that have failed to maintain financial discipline under their initial loan terms.

Valuable Assets Risk Public Auction Under Mortgage Rules

The credit lines are secured by a substantial pool of fixed and movable collateral, which remains legally under bank charge until the debts are fully cleared. These assets will face immediate public auction if the deadline is missed.

The pledged collateral includes prime residential and agricultural land parcels located across Siraha, Salyan, Bara, Parsa, and Nawalparasi districts. Additionally, the bank holds mortgages on commercial vehicles, including heavy-duty Tata and Mahindra trucks, alongside several electric transport cars, all of which face immediate repossession.

Coordinated Nationwide Recovery Across Multiple Branches

The sweeping scale of this credit recovery drive is evident from the involvement of multiple branch offices across different regions of the country. This highlights a unified approach by the bank to clean up its loan book.

The branches actively managing these default cases include the Golbazar and Lahan units in Siraha, the Salyan branch, the Birgunj Bypass Road office, the Nijgadh branch in Bara, and the Gochhada branch in Nawalparasi. Each branch recovery team has been authorized to work with local law enforcement to secure the pledged assets once the 35-day window closes.

Conclusion: Prioritizing Financial Discipline for Institutional Safety

The extensive public notice issued by Himalayan Bank Limited serves as a vital reminder of the legal obligations tied to formal banking credit in Nepal. By setting a strict 35-day deadline across its regional branches, the bank is taking firm action to protect its financial health and enforce credit discipline.

For the defaulting businesses and guarantors, this period represents their final opportunity to settle their accounts and protect their commercial reputations. These proactive recovery steps help ensure the long-term reliability and safety of the entire Nepalese banking sector.

For More: Himalayan Bank Repayment Notice