Nepal Investment Mega Bank Issues Statement Following CEO Arrest Incident
14th May 2026, Kathmandu
Nepal Investment Mega Bank has issued an official statement following the recent development where its Chief Executive Officer, Jyoti Prakash Pandey, was taken into custody by authorities. The investigation, conducted by the Central Investigation Bureau of Nepal Police, centers on the auction and recovery process associated with Smart Telecom.
NIMB CEO Clarification Arrest
The bank has publicly acknowledged the situation and is working to clarify the legal and financial procedures that led to the current scrutiny. This NIMB CEO clarification arrest news has gathered significant attention within the financial sector of Nepal as the bank defends its recovery actions as standard legal practice.
Legal Compliance and Banking Procedures
In its official response, the bank emphasized that all financial actions related to the recovery process were conducted within the framework of prevailing banking laws. NIMB stated that its procedures adhered strictly to the Bank and Financial Institutions Act (BAFIA) 2073 and the Secured Transactions Act 2063. The core of the bank’s defense is its legal responsibility to recover loans that were originally funded through depositor money. According to the bank, the measures taken were necessary steps to safeguard the interests of its clients and ensure the integrity of its lending portfolio.
Smart Telecom Auction and Fund Distribution
The primary focus of the CIB investigation involves the auction sale of assets belonging to Smart Telecom. These assets included various pieces of telecom equipment installed on leased properties. On Ashoj 3, 2082, the bank published a formal auction notice to begin the recovery process. The total proceeds from this auction amounted to approximately NPR 4.60 billion. Out of this significant sum, the bank utilized around NPR 4.22 billion to settle various consortium lending obligations. This massive financial maneuver was intended to clear the primary debts associated with the telecom provider.
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Management of Remaining Auction Proceeds
A specific point of interest in the investigation is the remaining NPR 380 million from the auction sale. NIMB has clarified that this amount has not been moved into general bank funds but is instead being held in an Earnest Money Auction Account. The bank explained that this account was frozen by relevant authorities, preventing immediate disbursement. The purpose of reserving these funds is to settle outstanding payments related to rent and electricity dues owed to various landlords and service providers who hosted Smart Telecom infrastructure. The bank intends to release these payments gradually as verified claims and supporting documents are provided by the authorities.
Cooperation with Investigative Authorities
Throughout the process, Nepal Investment Mega Bank has maintained that it is fully cooperating with the Central Investigation Bureau and other investigating bodies. The bank has been providing all requested records, documents, and specific transaction details in a timely manner to facilitate a clear understanding of the case. In its public statement, the bank pledged to continue this cooperation as the investigation moves forward. The leadership at NIMB remains committed to transparency regarding the Smart Telecom case and the professional conduct of its executive management team.
Implications for the Banking Sector
This case highlights the complexities of large scale loan recovery and the regulatory oversight governing the banking industry in Nepal. The NIMB CEO clarification arrest situation serves as a reminder of the strict accountability measures in place for high level financial executives. As the investigation continues, the focus will remain on whether the bank followed every detail of the law during the asset liquidation process. For now, the bank stands by its CEO and its internal protocols, asserting that every action taken was in the best interest of the financial institution and its depositors.
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