Kumari Bank Invites Sealed Bids for Sale of Mortgaged Property
29th June 2026, Kathmandu
Kumari Bank Limited has issued a seven-day sealed bid notice for the sale of a mortgaged property pledged against a defaulted loan obtained from its Baghbazar Branch, Kathmandu.
KBL Invites Sealed Bids
This non-performing asset liquidation process comes after the financial institution exhausted standard communication channels to settle the outstanding credit facility. Commercial banks routinely utilize public property auctions as a definitive legal mechanism to clear default risks and recover depositor capital from non-paying accounts.
When a credit line experiences prolonged delinquency, the banking enterprise is legally empowered under prevailing financial laws to auction the collateral. This structured auction opens a lucrative avenue for real estate investors and private home buyers to acquire fully verified residential assets within prime urban zones of the capital city.
Background on the Credit Default and Collateral Valuation
According to the bank, the borrower and guarantors failed to repay the outstanding loan, interest, penalty interest, and other charges despite repeated written and verbal notices. Because the responsible parties did not present a viable financial restructuring plan within the grace periods, the bank has decided to auction the mortgaged property through a confidential sealed bidding process to recover the outstanding dues.
The real estate asset is officially registered in the name of Mr Jay Kumar Pathak. The complete property parcel consists of land measuring 129.19 square meters, which translates to approximately 4 annas in the traditional local measurement system, along with the standing house and all attached permanent structures. This property is located in Ward No 4 of Kathmandu Metropolitan City within the Kathmandu District, making it a highly desirable piece of urban real estate.
Critical Auction Timelines and Location Details
Prospective buyers must follow a strict administrative schedule to ensure their bids are officially registered for review. The complete submission window remains active for only 7 days from the first official publication date of the notice. Bidders can purchase the formal application documents at Kumari Bank Limited, Baghbazar Branch, Kathmandu, upon paying a non-refundable bid form fee of NPR 500.
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The final evaluation and selection process will take place in a fully transparent environment to ensure corporate fairness. The official bid opening session is scheduled for 3:00 PM on Asar 22, 2083, which corresponds to July 6, 2026. The opening procedure will be conducted at the Baghbazar Branch of the bank in the presence of the applicants or their legally authorized representatives.
Essential Bidding Terms and Deposit Rules
The bank has put forward clear guidelines that all participants must follow to avoid immediate disqualification. Bidders must clearly specify their offered purchase price in both figures and words inside the application forms. Any discrepancy between the written words and numerical figures can lead to administrative confusion and potential rejection of the entire file.
Financial security during the auction phase must be backed by guaranteed funds. The bid must be accompanied by a Good for Payment cheque issued directly by Kumari Bank or a valid cash payment voucher for the required earnest money deposit. The successful bidder must deposit the remaining purchase amount within the specific period determined by the bank after final bid approval.
Ownership Transfer Expenses and Operational Disclaimers
Acquiring auctioned collateral requires the buyer to manage all subsequent legal registration fees. All registration fees, state taxes, and other ownership transfer expenses shall be borne entirely by the purchaser. Furthermore, the bank reserves the ultimate right to accept or reject any or all bids without assigning any specific reason to the participants.
Interested corporate groups or individual buyers requiring technical blueprints, exact field coordinates, or clear legal history documents may contact the Baghbazar Branch during regular corporate office hours. Reviewing the property files early allows buyers to finalize their financial projections and submit competitive sealed bids before the upcoming closing deadline.
For More: KBL Invites Sealed Bids
