Kamana Sewa Bikas Bank Initiates Public Auction of Mortgaged Properties Through Sealed Bids

29th July 2026, Kathmandu

Kamana Sewa Bikas Bank Limited has officially started the sale process of real estate assets pledged as collateral against defaulted credit facilities.

KSBBL Initiates Public Auction

The national level development bank issued a formal seven day public notification informing potential buyers, investors, and the general public about the auction of several land parcels and residential houses. This decisive step comes after borrowers and their respective guarantors repeatedly failed to settle outstanding financial liabilities, including principal amounts, accumulated interest, late penalties, and associated banking administrative fees, despite multiple written notices and verbal reminders issued by the institution.

The liquidation of mortgaged collateral remains a standard legal mechanism employed by financial institutions in Nepal to mitigate non performing loans and maintain healthy balance sheets. Under prevailing banking regulations and financial recovery statutes, banks possess the legal authority to recover bad debts by liquidating secured assets when default conditions persist over an extended duration.

Key Locations of Properties Offered Under Auction

The properties listed for sale are spread across several strategic districts in Western Nepal, covering both urban municipal areas and developing rural regions. The bank has categorized these assets based on their geographical distribution to provide clear clarity to local buyers and commercial property developers. The major locations identified in the notice include:

• Tansen Municipality located in Palpa district, featuring valuable urban residential and land plots.
• Tilottama Municipality situated in Rupandehi district, an economically active area with growing real estate value.
• Paanini Rural Municipality in Arghakhanchi district, offering land holdings suitable for local development.
• Gadhawa Rural Municipality positioned in Dang district, comprising agricultural and residential land.
• Specific land parcels and residential structures located in designated areas within Kapilvastu district.

All properties included in the publication are registered under the official titles of the primary borrowers, personal guarantors, or affiliated third parties who pledged their real estate as mortgage security for various business and personal credit lines.

Understanding the Sealed Bidding Mechanism

The financial institution has specified that all assets will be disposed of strictly on an as is where is basis through a competitive, confidential sealed bid auction procedure. This method ensures transparency and equal opportunity for all qualified market participants while maximizing recovery values for the institution.

Advertisement

To participate in this acquisition opportunity, interested parties must follow a structured procedure outlined by the management:

• Form Acquisition: Interested individuals, sole proprietorships, registered firms, corporate entities, or private institutions must collect the mandatory bid application form from the central office or designated branch offices of Kamana Sewa Bikas Bank.
• Submission Window: Completed application forms along with all required supporting documentation must be submitted in sealed envelopes within exactly seven days from the public notice release date.
• Bid Opening: The sealed proposal envelopes will be formally unsealed at the bank central office located in Gyaneshwor, Kathmandu, at the pre scheduled date and time in the direct presence of participating bidders or their legally authorized representatives.

Essential Terms and Mandates for Bid Participants

To ensure that only genuine and financially capable buyers enter the bidding arena, the bank has established clear eligibility conditions. Non compliance with any specified requirement may lead to immediate disqualification of the submitted offer.

• Mandatory Prescribed Application: Offers must be submitted exclusively using the official bid form provided by the bank without altering any predefined structure.
• Earnest Money Deposit: Prospective purchasers are required to deposit a mandatory bid security amount into the designated account of the bank, serving as financial commitment for the transaction.
• Explicit Price Valuation: Bidders must clearly state their monetary offer in both numeric figures and written words for each specific property they intend to purchase.
• Identification Verification: Individual applicants must submit clear copies of citizenship certificates, while corporate entities must attach company registration certificates, tax registration documents, and authorized board resolutions.
• Full Regulatory Compliance: Participants must accept all rules, regulations, and legal caveats specified inside the official bid document set provided by the central management.

The management has explicitly reserved the full legal right to accept, postpone, modify, or reject any or all submitted bids without being obligated to assign any specific reason or explanation to applicants.

Implications for Asset Recovery and Next Actions

This public transaction forms an integral part of the debt collection strategy pursued by Kamana Sewa Bikas Bank to address non performing assets. When credit facilities turn non performing, financial institutions face strict provisioning requirements imposed by central banking guidelines, making timely collateral recovery essential for maintaining liquidity and financial stability.

If any of the listed real estate parcels remain unsold after the conclusion of this seven day sealed bidding process, the bank reserves the right to initiate further legal remedies allowed by Nepalese law. Such future actions may include direct banking ownership acquisition, secondary public auctions, or formal legal enforcement proceedings against the financial guarantors.

Prospective real estate investors and buyers are strongly encouraged to conduct thorough physical inspections of the properties, verify land boundary records with local survey offices, and seek complete financial details directly from the bank management before submitting their bids.

For More: KSBBL Initiates Public Auction