NIC Asia Bank Limited Publishes Urgent Seven Day Collateral Auction Notice
15th May 2026, Kathmandu
NIC Asia Bank Limited has officially published an urgent public auction notice regarding the liquidation of movable and immovable collateral properties belonging to various defaulting borrowers. The announcement was released through its corporate office located at Thapathali, Kathmandu.
NIC Asia Auction Notice
The bank has taken this decisive legal action after the listed borrowers failed to clear their outstanding dues despite multiple written notifications and reminders. Following national banking regulations, the institution has given interested buyers and institutional investors a strict seven day window to submit their sealed tender bids for the property assets.
Understanding the Legal Context of Collateral Liquidation
The formal notice states that the bank is moving forward with the auction under the provisions of the Bank and Financial Institutions Act 2073. When individual entrepreneurs or corporate entities secure substantial credit facilities but continuously fail to meet their principal and interest repayment schedules, the lending institution has the legal right to seize the underlying security. The money recovered from the upcoming public asset auction will be directly applied toward settling the outstanding balance of the loan accounts, protecting the bank depositors and overall financial integrity.
Details of the Defaulting Borrowers and Seized Properties
The public disclosure lists several businesses and their associated guarantors who have fallen into default. One prominent entity mentioned is Soul Mode Fashion Private Limited, an outfit operating within the garment and retail sector. The collateral associated with this corporate account includes land and building structures registered in the Lalitpur and Kathmandu districts. Another firm facing asset liquidation is Shiv Jyoti Patanjali Ayurveda Seva Kendra Private Limited, whose assets and business inventory have been flagged for recovery actions due to non compliance with standard banking terms.
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Construction and Retail Entities Facing Asset Foreclosure
The auction roster also includes Youth Brothers Civil Construction and Suppliers Private Limited, managed by its promoters and personal guarantors. The properties tied to this construction account include valuable land plots situated within Dhanusha district. Additionally, small scale trading firms such as Shri Panchamukhi Apparel Store and Shri Durga Khadyanna Bhandar have been named in the official document. The bank has attached specific vehicle assets, including a commercial truck with registration plate details, alongside land parcels located in Makwanpur district, ensuring a wide array of assets are open for public bidding.
Guidelines and Procedures for Submitting Tender Bids
Interested individuals and corporate bidders must adhere to strict procedural rules to participate in this liquidation process. Official tender bid forms can be obtained from the bank recovery department or designated branches upon paying a non refundable fee of NPR 1,000 per form. Bidders must clearly specify the monetary amount they are willing to offer for the chosen property or vehicle. All completed sealed application forms must be physically submitted to the centralized corporate office within seven days from the publication date of the notice.
Financial Deposits and Payment Terms for Bidders
To ensure the authenticity of the bids, the bank requires all applicants to deposit a specific earnest money amount, which typically equals 10 percent of their total bid evaluation, into a designated internal bank account. Alternatively, participants can attach a valid bank guarantee issued by a licensed financial institution. The notice clarifies that the bank management reserves the absolute right to accept or reject any or all bids without providing any administrative justification to the applicants. Winning bidders will be given a set timeline to deposit the remaining balance to complete the legal property transfer.
Consequences for Borrowers and Final Call to Action
The publication of this seven day notice serves as a final public warning to the defaulting borrowers and their respective personal guarantors. Even during this auction phase, borrowers are often given a microscopic window to visit the bank, pay off their entire outstanding liability including accumulated penalties, and release their ancestral properties from the liquidation block. However, if no financial settlement is reached within the seven day period, the bank will proceed with opening the sealed bids publicly, transferring the ownership of the land, buildings, and vehicles to the highest legitimate bidder.
For More: NIC Asia Auction Notice Liquidation
