Lumbini Bikas Bank Issues 35-Day Recovery Notice to Defaulting Borrowers
24th September 2026, Kathmandu
Lumbini Bikas Bank Limited has issued a mandatory 35-day public notice requiring listed borrowers to settle their outstanding financial obligations, including principal, accrued interest, and penal interest.
Lumbini Bikas Recovery Notice Issued
Published in the Nagarik National Daily on September 24, 2026 (Ashwin 8, 2083), the notice addresses borrowers who have failed to meet payment terms stipulated in their credit agreements. The measure follows multiple verbal and written recovery reminders that went unheeded.
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Repayment Terms and Timeline Requirements
The bank has set a strict deadline for complete debt settlement across all delinquent loan accounts.
- Settlement Period: Borrowers must clear all outstanding principal, regular interest, and penalty charges within 35 days from the publication date.
- Non-Compliance History: The public notice serves as a final recovery step after previous direct communications failed to yield repayment.
Collateral Auction and Legal Consequences
Failure to clear all dues within the 35-day window will trigger legal recovery proceedings under existing Nepalese banking regulations.
- Collateral Liquidation: The bank will proceed with the auction and sale of pledged movable and immovable assets to recover outstanding debts.
- Extended Asset Recovery: If collateral sales fail to cover the full debt, recovery actions will target other movable and immovable assets belonging to borrowers and guarantors.
- Debt Recovery Tribunal: Legal suits may be filed with the Debt Recovery Tribunal or through other judicial mechanisms allowed by prevailing laws.
- Credit Blacklisting: Defaulting borrowers and associated parties will be recommended for blacklisting with the Credit Information Centre Limited in line with Nepal Rastra Bank directives.
For More: Lumbini Bikas Recovery Notice Issued
