NIC Asia Bank has issued a second 7-day notice to auction the collateral of 150 borrowers who failed to repay their loans. The notice was published on Monday for all 150 defaulters at once.
Earlier, the bank had issued a 15-day auction notice, but the collateral could not be sold. If the assets are still not sold within this new 7-day period, the bank will have to classify them as non-banking assets.
Most of the loans were small in size, so the collateral placed for auction is also of relatively low value. Despite giving repeated verbal reminders and a 35-day written notice, the borrowers did not repay, leading the bank to issue the first 15-day auction notice.
The bank stated that it has repeatedly requested borrowers to clear their dues and has taken this step after completing all legal procedures.
