Kamana Sewa Bikas Bank Issues 35-Day Public Notice for Loan Recovery Settlement
3rd December 2025, Kathmandu
Kamana Sewa Bikas Bank Limited has officially commenced its debt recovery proceedings.
Kamana Sewa Bank Loan
The bank issued a crucial 35-day public notice targeting numerous borrowers and guarantors with outstanding loan obligations. This aggressive step signals the bank’s commitment to reducing its non-performing assets. The immediate focus is on ensuring prompt settlement of all dues.
The core of this initiative is the Kamana Sewa Bank Loan Recovery process, urging responsible parties to act immediately before legal enforcement begins.
Understanding the Ultimatum
The public notice, published in adherence to the requirements of the Banking and Financial Institution Act (BAFIA) and the prevailing Debt Recovery Directives, serves as the final warning. It clearly instructs all named debtors and respective guarantors to contact the bank’s relevant branches within 35 days from the date of publication.
Affected parties must approach the bank to fully clear their loans, interest, and any associated penal charges. The bank is strictly enforcing this deadline to protect the interests of its shareholders and depositors.
Consequences of Non-Compliance
Failure to settle the outstanding debt within the specified 35-day period will trigger irreversible legal action. Kamana Sewa Bikas Bank will exercise its right to take complete possession of the collateral. The bank will then initiate the process of publicly auctioning the secured assets.
These assets, including residential properties, commercial plots, and other real estate, are listed as security against the defaulted loans. The auction process involves an open bidding mechanism. Any recovery amount realized from the sale will be adjusted against the borrower’s total outstanding debt. Borrowers remain liable for any remaining balance after the sale.
Legal Obligations for Borrowers and Guarantors
The notice strictly outlines the joint responsibility of both the primary borrowers and their respective loan guarantors.
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Guarantors carry the same liability as the principal debtor once the primary borrower defaults. The bank holds the right to pursue both parties simultaneously for the recovery of the debt. Guarantors must recognize their contractual obligation.
They should ensure the primary borrower addresses the matter immediately or prepare to step in and clear the dues themselves to protect their own collateral and credit standing.
Why Banks Issue Public Notices
A public notice is a mandated step in the loan recovery cycle for financial institutions in Nepal. It establishes a clear legal record of the bank’s effort to contact the borrower. This step legally validates the subsequent enforcement actions, such as auctioning the collateral. It also provides transparency in the financial sector’s debt management practices.
This process reflects the bank’s disciplined approach to managing credit risk. Timely recovery efforts prevent ballooning non-performing loans (NPLs). High NPLs negatively impact a bank’s profitability and capital adequacy. Therefore, notices like this are essential tools for maintaining financial stability and regulatory compliance.
Action Required by Named Parties
All individuals and entities listed in the public notice must immediately contact the Kamana Sewa Bikas Bank branch from which they secured the loan.
The specific branches involved are geographically diverse, including areas like Kathmandu, Pokhara, Rupandehi, and other major financial hubs.
Parties must bring all relevant loan documents and identification for verification. Proactive engagement with the bank is the only way to halt the auction process. Borrowers can explore options like immediate repayment or potential restructuring discussions, although such discussions are typically time-sensitive. The clock is now ticking on this 35-day window for resolution.
This Kamana Sewa Bank Loan Recovery action serves as a strong reminder of the strict accountability in the country’s credit market. The bank is signaling that it will not hesitate to enforce recovery measures against persistent loan defaults. This strategy aims to safeguard the financial health of the institution and maintain market confidence.
For more: Kamana Sewa Bank Loan
