Nepal Bank Limited Launches Public Auction Process for Liquidating Defaulted Mortgaged Properties

17th June 2026, Kathmandu

Nepal Bank Limited has officially published a 15-day public notice inviting confidential sealed bids for the auction sale of various collateral assets.

NBL Invites Sealed Bids

The sweeping liquidation process is being carried out on an as-is, where-is basis, meaning all featured properties are sold in their current physical and legal condition.

The formal auction notice follows a prolonged non-payment timeline during which the primary borrowers failed to settle their outstanding financial obligations despite receiving multiple central bank mandated warning letters and extension periods.

As a result, the bank is exercising its statutory recovery rights to liquidate the underlying security assets through an open market tender.

Application Framework and Auction Participation Parameters

The financial institution has set up clear administrative guidelines to ensure a highly transparent, competitive bidding process for all interested market buyers.

• Liquidating Financial Entity: Nepal Bank Limited
• Auction Process Period: 15 Days from the initial publication date of the notice
• Eligible Bidder Typologies: Private individuals, registered commercial firms, and corporate companies
• Document Acquisition Source: Available at designated local branches or the main Loan Recovery Department
• Mandatory Tender Entry Document: Official bid forms obtainable upon paying a prescribed non-refundable fee
• Bid Security Deposit Guarantee: Bidders must provide a specified percentage deposit via voucher, manager cheque, or bank guarantee
• Final Selection Authority: The bank reserves the full right to accept or reject any financial bid without giving explicit reasons

Execution Workflows and Ownership Transfer Guidelines

Individual property investors and real estate trading firms must comply with rigorous procedural requirements to ensure their financial submissions qualify for the final opening round.

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• Pre Bid Asset Verification: Prospective buyers are strongly encouraged to coordinate with local branch managers to inspect the physical plots and review the associated land registration documents beforehand.
• Centralized Opening Sessions: The submitted secret envelopes will be opened publicly at designated branches or the central Loan Recovery Department, allowing active bidders or their authorized representatives to observe the unsealing.
• Full Settlement Obligations: The declared winning bidder must deposit the remaining financial balance within a strict, pre-set timeline specified by the recovery board.
• Legal Title Transition: Upon receiving full monetary payment, the bank will coordinate with regional land revenue offices to complete the formal asset ownership transfer according to prevailing national laws.
• Risk Mitigation Procedures: Failure by a winning bidder to complete payments on time will result in the immediate forfeiture of their initial security deposit.

Balancing Financial System Health and Economic Stability

For the wider banking network of Nepal, running efficient collateral auction processes is essential for keeping the entire financial system stable.

When high-value commercial loans default, it ties up valuable institutional funds that could otherwise be used to bankroll vital infrastructure, trade, and small business operations nationwide.

By running rapid, well-regulated property liquidations, major commercial banks ensure a steady flow of credit, protect the deposit capital of everyday citizens, and keep public confidence in the national financial ecosystem strong.

Opportunities for Long Term Value Investors in Seized Assets

The release of these mortgaged properties provides a distinct path for real estate development firms and long-term asset managers to buy commercial and residential properties at competitive market rates.

Because the bank values these assets based on conservative liquidation assessments, successful bidders can often secure valuable land plots and physical buildings under favorable financial terms.

Moving these stagnant, non-performing properties back into active private ownership helps revitalize local real estate markets and injects productive economic activity back into regional communities across Nepal.

For More: NBL Invites Sealed Bids