Laxmi Sunrise Bank Issues Public Notice On Collateral Auction For Overdue Loans
27th July 2026, Kathmandu
Laxmi Sunrise Bank Limited has published a public notice notifying defaulted borrowers regarding the upcoming auction of pledged assets.
Laxmi Sunrise Collateral Auction
The decision comes after numerous formal notifications and direct requests for loan settlement remained unanswered within the stipulated timeframe.
The institution stated that the involved borrowers failed to clear their outstanding financial liabilities. These liabilities comprise principal loan balances, accrued interest, penal interest, and operational expenses. Consequently, the bank has decided to proceed with liquidating the collateral held as security.
Legal Framework Governing Recovery Operations
The recovery proceedings are anchored in the powers granted under the Bank and Financial Institutions Act 2073 (BAFIA) alongside guidelines established by Nepal Rastra Bank.
Prior to reaching the auction stage, Laxmi Sunrise Bank issued formal written notices directly to defaulting clients. The bank also published a thirty-five day warning notice in public media outlets, giving borrowers opportunity to settle their overdue credit obligations.
Because the borrowers failed to resolve their accounts within the mandatory warning window, the bank is exercising its authority to initiate a competitive sealed bidding process.
Details Of Mortgaged Assets Subject To Bidding
The mortgaged assets selected for public auction encompass a range of movable and immovable properties pledged by borrowers or third-party guarantors.
Immovable properties include land plots, residential buildings, and commercial real estate located across various districts. Movable collateral includes commercial vehicles, machinery, equipment, inventory, and designated financial instruments.
By liquidating these physical assets through an open bidding mechanism, Laxmi Sunrise Bank aims to recover the maximum possible valuation to offset non-performing credit exposure.
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Procedure For Bidders And Investors
Laxmi Sunrise Bank has invited eligible individuals, firms, registered companies, and institutional investors to participate in the competitive bidding event.
Potential buyers can obtain detailed information concerning specific locations, physical conditions, legal boundaries, and minimum valuation limits of the listed properties by contacting the bank.
The primary contact point for buyers is the Loan Recovery Department situated at the bank Head Office in Hattisar, Kathmandu. Prospective bidders can also approach specific branch offices associated with each loan file.
Interested buyers must submit their competitive price offers within sealed envelopes before the deadline specified in the formal auction notice, accompanied by the required bid deposit.
Residual Liability Clause For Borrowers
Laxmi Sunrise Bank outlined the legal obligations remaining on defaulting borrowers if auction proceeds fail to fully cover the total outstanding debt.
Should the highest bids fall short of the total cumulative liability, the bank retains legal authorization to pursue further recovery action through other lawful means.
Central bank regulations permit financial institutions to seek attachment of other personal assets, enforce guarantor liability, or report defaulting parties to the Credit Information Bureau.
Borrowers have been urged to clear their outstanding obligations immediately prior to the execution of the property transfer to avoid further legal consequences.
For More: Laxmi Sunrise Collateral Auction
