Laxmi Sunrise Bank Limited Announces Intensive Debt Recovery Measures Against Defaulting Borrowers

20th May 2026, Kathmandu

Laxmi Sunrise Bank Limited has officially issued a comprehensive 35 day public warning notice targeted at regularizing non performing loan accounts distributed across its national branch networks. The commercial banking group stepped forward with this decisive financial enforcement process after numerous retail and corporate credit consumers systematically failed to honor their signed credit agreements and pre approved payment schedules.

Laxmi Sunrise Asset Auction

According to the central recovery division of the bank, continuous verbal reminders, digital communications, and formal written warnings were regularly delivered to the debtors over past months, but several borrowers allegedly chose to ignore their financial liabilities completely.

Demanding Immediate Settlement of Accumulated Capital, Overdue Interest, and Penalty Charges

The public notification mandates that all named default customers must visit their respective lending branch offices to regularize their loan portfolios immediately. The financial institution is demanding the total settlement of all outstanding principal capital, accumulated regular interest, penalty interest charges, and associated administrative processing fees that have built up during the default timeline. The bank management clarified that partial payments or unverified verbal promises will no longer be accepted to pause legal enforcement, meaning borrowers must clear their full legal obligations to halt the ongoing recovery tracking.

Severe Regulatory Warnings of National Credit Blacklisting Actions through Central Registries

If the outstanding debts are not completely resolved within the 35 day window counting from the formal publication date of Jestha 5, 2083 on the traditional calendar, Laxmi Sunrise Bank Limited will activate harsh regulatory punishments. The bank will formally forward the complete identity details of the primary borrowers, mortgage guarantors, personal sureties, active business partners, tax representatives, and corporate authorized signees to the Credit Information Bureau of Nepal. Being placed on the national financial blacklist will permanently strip these individuals of their right to open new bank accounts, secure future credit lines, or run formal commercial businesses anywhere in the country.

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Seizing and Auctioning Pledged Land Parcels and Residential Structures

In tandem with the credit blacklisting protocols, the bank legal team is preparing to seize and liquidate all immovable real estate collaterals pledged during the initial loan acquisition. The mortgaged assets, which include premium residential houses, commercial complexes, and vacant land parcels, will be put up for public sale through a competitive sealed bid auction. The bank stated that this liquidation process will be conducted in strict compliance with the core provisions of the Bank and Financial Institutions Act 2073, the mandatory directives of Nepal Rastra Bank, and the internal risk management policies of the institution.

Activating Secondary Asset Seizure Clauses for Residual Outstanding Balance Recoveries

The bank has explicitly warned defaulters that losing their primary mortgaged property might not fully resolve their outstanding financial liabilities. If the final cash proceeds generated from the public sealed bid auction fall short of covering the total outstanding debt, regular interest, and accrued penalties, the bank will not drop the case. Under prevailing national banking laws, Laxmi Sunrise Bank Limited holds full authority to proceed with secondary asset seizure campaigns, targeting other unmortgaged movable and immovable personal properties, active bank deposits, and family vehicles owned by both the primary borrowers and their guarantors.

Strict Participation Rules and Financial Requirements for Potential Property Auction Buyers

• To facilitate a clean, legally binding transaction for its seized asset inventory, the bank has outlined clear rules for prospective public buyers, property developers, and investment firms:
• All interested participants must submit their financial offers inside firmly sealed envelopes within the prescribed timeline.
• Every application packet must include a refundable earnest money security deposit equivalent to at least 10 percent of the total proposed purchase bid.
• The winning bidder selected by the asset review panel must pay the remaining 90 percent cash balance within a strict timeframe set by the bank.
• The buyer is entirely responsible for paying all applicable state capital gains taxes, municipal land transfer expenses, and deed registration fees.
• The bank board also retains full corporate authority to accept, modify, or reject any bid without providing explanations to the participants.

Urgent Advisory for Debtors to Protect Family Assets From Public Liquidation

The central management of Laxmi Sunrise Bank Limited has urged all concerned borrowers and guarantors to utilize this final 35 day grace period to protect their family properties from public auction. The bank clarified that once the sealed bid procedures are officially completed and ownership deeds are transferred to third party buyers, default customers will lose all legal rights to object to the final valuation metrics, structural sale prices, or asset allocations of the mortgaged property.

Official Timelines and Venues for Bid Submission and Envelope Opening Phases

According to the operational details released by the bank, the absolute final cutoff date for the submission of sealed bid envelopes is fixed for Jestha 19, 2083 B.S. The formal public opening of all received bid packets will take place on the following day, Jestha 20, 2083 B.S., at exactly 4:00 PM. The event will be conducted in a transparent manner at the Central Office of Laxmi Sunrise Bank Limited, situated in the Gyaneshwor commercial sector of Kathmandu, Nepal. Interested property buyers and affected parties can contact the central helpdesk during standard office hours to obtain specific property mapping files and official bid sheets.

For More: Laxmi Sunrise Asset Auction