Shangri-la Development Bank Auctions Collateral Assets Over Unpaid Loans

25th September 2026, Kathmandu

Shangri-la Development Bank Limited has issued an urgent 15-day public notice initiating the auction of pledged movable and immovable assets belonging to defaulting borrowers.

Shangri-la Bank Auctions Collateral

According to the notice published on September 24, 2026, the auction was ordered following the borrowers’ continuous failure to settle their outstanding principal, accrued interest, penalty charges, and other related dues despite repeated verbal and written notifications from the bank.

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Auction Terms and Bidding Schedule

The bank is conducting the asset liquidation on an “as is, where is” basis in accordance with existing banking regulations and legal frameworks governing financial institutions.

• Asset Sale Structure: All pledged properties and collateral assets will be sold on an “as is, where is” basis.
• Bid Submission Deadline: Interested individual or corporate bidders must submit their sealed bid tenders to the concerned branch office within office hours by October 9, 2026 (Ashwin 23, 2083 BS).
• Bid Opening Schedule: Sealed bids will be opened at 11:00 AM on the immediate following working day after the submission deadline at the respective branch offices.
• Representative Attendance: Bidders or their formally authorized representatives may attend the bid opening session; however, their absence will not halt or impede the opening procedure.

Regulatory Actions and Default Recovery Rights

The financial institution has outlined stringent regulatory actions and secondary recovery measures if the debt remains unpaid or the collateral sale falls short.

• Blacklisting Warning: Defaulting borrowers and guarantors who fail to clear all outstanding loan liabilities within the 15-day deadline face immediate recommendation for blacklisting with the Credit Information Bureau (CIB) as per Nepal Rastra Bank directives.
• Alternate Liquidation Rights: If the pledged properties fail to sell during the public auction process, the bank reserves the legal right to acquire the assets directly or pursue alternative recovery mechanisms permitted by law.
• Surplus Liability Recovery: If total auction proceeds are insufficient to fully cover the bank’s outstanding dues, the bank will initiate secondary legal proceedings to seize and liquidate other personal, movable, or immovable properties owned by the borrowers.

For more: Shangri-la Bank Auctions Collateral