KATHMANDU: Nepal Investment Mega Bank (NIMB) has said it has taken serious note of media reports related to the loan recovery process and asset auction involving Smart Telecom Pvt. Ltd..

The bank issued an official clarification after the public disclosure that its Chief Executive Officer Jyoti Prakash Pandey had been taken into custody for investigation, according to a press statement issued by the Central Investigation Bureau on May 13, 2026.

The bank stated that the loan recovery process was carried out within the legal framework of the Bank and Financial Institutions Act, 2017, and the Secured Transactions Act, 2006, in relation to loans disbursed from depositors’ funds.

According to the bank, telecommunications equipment and materials linked to Smart Telecom were auctioned following a public notice published on September 19, 2025.

Of the approximately Rs 4.60 billion generated from the auction, around Rs 4.22 billion was used to repay consortium loans, while the remaining nearly Rs 380 million has been kept in the bank’s “Earnest Money Auction Account.”

The bank said the remaining amount has been frozen to settle pending liabilities of the borrower, including house rent and electricity dues.

It added that payments would only be released gradually after requests are received from the concerned authorities along with the necessary supporting documents.

The bank also said the ongoing investigation process would not affect its daily operations, financial governance, or the interests of depositors and shareholders.

It further stated that it has been continuously cooperating with regulatory bodies and investigating authorities.