Lumbini Bikas Bank Issues Final 21-Day Notice for Loan Settlement and Auction of Collateral Properties
23rd November 2025, Kathmandu
Lumbini Bikas Bank Limited has issued a final 21-day notice to a large number of defaulting borrowers
Lumbini Bank Final Notice
Lumbini Bikas Bank Limited has issued a final 21-day notice to a large number of defaulting borrowers, urgently instructing them to settle their outstanding loans. This decisive action is taken in strict compliance with the Bank and Financial Institutions Act (BAFIA) and other relevant Nepalese financial laws, following repeated reminders and a prolonged period of non-payment of dues.
Final Notice and Auction Procedure
The notice serves as the ultimate warning: if the listed borrowers fail to fully settle their dues within the specified period, the bank will immediately proceed with the auction of their collateral assets to recover the outstanding debt.
Deadline: Borrowers have 21 days from the date of the public notice’s publication to repay the entire outstanding dues, which include the principal, accumulated interest, and any applicable penalties or charges recorded up to the issue date.
Auction Method: Should the loans remain unpaid, the bank will initiate a public auction of the pledged assets. All auction proceedings will be carried out through sealed bids (Goshwara Shilabandi Boli), where interested bidders submit confidential offers.
Asset Type: The collateral properties subject to auction primarily include houses, lands, and other fixed assets, often residential and commercial land and buildings, located across various districts.
Geographical Scope and Borrower Details
The comprehensive notice includes a large number of borrowers, highlighting the bank’s broad regional exposure and its nationwide effort to manage Non-Performing Assets (NPAs).
Advertisement
Wide Coverage: Borrowers listed in the notice hail from multiple districts across Nepal, indicating the extensive reach of Lumbini Bikas Bank. Key districts mentioned include: Rupandehi, Palpa, Syangja, Gulmi, Nawalparasi, Chitwan, Kapilvastu, Dang, and the Kathmandu Valley (Kathmandu, Lalitpur, and Bhaktapur).
Information Provided: Each individual borrower listing provides detailed information essential for both compliance and the auction process, including the borrower’s name, their address, the specific loan account number, the type of loan they obtained, comprehensive details of the collateral (including plot numbers and registered ownership), and the approximate debt amounts recorded.
Additional Legal and Compliance Warnings
The notice includes several critical warnings directed at the defaulting borrowers, the public, and any third parties currently involved with the collateral properties.
Debt Recovery Scope: The bank explicitly states that if the auction proceeds from the immovable collateral are insufficient to cover the total debt, it may also recover the remaining dues through the auction of movable assets, the filing of debt recovery claims in court, or by pursuing any other legal action allowed under Nepalese financial law.
Third-Party Warning: The notice strongly warns the general public that third parties entering into any purchase or use agreements (such as secondary mortgages, sales, or leases) for the listed properties will not be given legal protection by the bank. Any such transactions made after the collateral was pledged will be considered null and void in relation to the bank’s claim.
Tenant/Occupant Eviction: The bank also warns that tenants and occupants currently residing or operating businesses within the collateral properties may be legally removed if the auction proceeds and the property is transferred to the successful bidder.
Borrowers and interested bidders are instructed to contact the Lumbini Bikas Bank Limited Central Office in Butwal, Rupandehi, using the contact numbers listed in the official notice for any further information or to initiate the repayment process.
For More: Lumbini Bank Final Notice
