NIMB clarifies smart Telecom loan recovery and asset auction case
Summary
Nepal Investment Mega Bank clarified that the loan recovery and asset auction involving Smart Telecom Pvt. Ltd. were conducted legally, with proceeds primarily used to repay consortium loans. The bank's CEO is under investigation, but daily operations remain unaffected.
Key Points
- Nepal Investment Mega Bank clarified the loan recovery and asset auction involving Smart Telecom Pvt. Ltd. were conducted legally under the Bank and Financial Institutions Act, 2017, and Secured Transactions Act, 2006.
- Smart Telecom's telecommunications equipment was auctioned generating approximately Rs 4.60 billion, mostly used to repay consortium loans.
- Around Rs 380 million from the auction remains frozen in an account to settle borrower's pending liabilities and will be released upon proper authority requests.
- The bank's CEO Jyoti Prakash Pandey has been taken into custody for investigation, but the bank assures ongoing operations and depositors' interests are unaffected.
