Kathmandu Bus Auction: RBB Sells 45 Swagatam Yatayat Buses – Loan Default Nepal
8th April 2025, Kathmandu
Rastriya Banijya Bank (RBB) has moved forward with the auction of 45 buses from Swagatam Yatayat Pvt. Ltd. This step comes after the transport company failed to repay a hire purchase loan. The bank’s Swoyambhu branch issued the auction notice earlier this week.
Kathmandu Bus Auction
Swagatam Yatayat had borrowed the funds under a vehicle financing scheme. The company is registered at the Office of the Company Registrar, Tripureshwor. Its founders are Mohan Bahadur Shrestha and Raj Shrestha.
According to the bank, both founders received multiple written and verbal requests for repayment. However, they did not clear the dues. As a result, the bank has initiated the auction process.
Last Chance for Repayment
RBB has offered one final opportunity. The company must clear the loan, along with all accrued interest and service charges, within 35 days. If payment is made within this time, the company can reclaim its collateral.
If no payment is made, the bank will go ahead with the public auction. In case no buyers show interest, RBB will take full ownership of the buses.
Vehicles Built by Tata Motors
The buses up for sale were manufactured by Tata Motors in 2018. The condition of each vehicle may vary, but all were used for public transportation.
Price Range and Terms
The auction prices range from NPR 1.93 million to NPR 3.89 million. Buyers must deposit 10% of their offered price in advance. This ensures only serious bidders take part in the process.
The bank has invited individuals and companies to express their interest. Interested parties can visit the branch office for further details.
Financial Recovery Efforts
This auction is part of RBB’s broader effort to recover overdue loans. The bank aims to strengthen its loan portfolio and reduce the number of non-performing assets.
Transport businesses like Swagatam Yatayat have faced challenges in recent years. Rising fuel prices, maintenance costs, and reduced demand during the pandemic created financial strain.
Now, with economic activity gradually returning, the bank sees this auction as a practical solution. It also sets an example for other borrowers to stay compliant.
Opportunity for New Operators
The buses still have commercial value. Small transport firms or new operators may benefit from this auction. Acquiring used buses at a reduced cost can help them enter the market with lower capital.
This move by RBB not only supports financial discipline but also promotes market efficiency. It opens up access to fleet expansion for those ready to invest.
Contact for Participation
The bank has requested all interested bidders to contact its Swoyambhu branch directly. Bidders can inspect the buses and review documents before making a final offer.
For more: Kathmandu Bus Auction
