NIMB Bank Issues Press Release Following CEO’s Arrest, Addresses Misleading Market Rumors

NIMB Bank has issued a press release addressing recent market rumors and public concerns following the arrest of its Chief Executive Officer in connection with an ongoing investigation related to the auction of assets belonging to Smart Telecom Pvt. Ltd.

The Bank stated that various media reports and circulating rumors regarding the asset auction and unpaid dues connected to Smart Telecom had drawn its attention. According to the Bank, all actions related to the loan recovery and auction process were carried out in full compliance with prevailing banking laws, the Bank and Financial Institution Act, the Secured Transactions Act, and the Bank’s internal loan recovery guidelines.

NIMB Bank clarified that the auction notice for Smart Telecom’s equipment and related assets had been published on 2082/06/03, after which the auction process was completed legally. The Bank stated that approximately NPR 4.22 billion from the total auction proceeds had been used to settle consortium loan liabilities, while the remaining amount NPR. 380 million has remained frozen in the Bank’s Earnest Money Auction Account following directives from the concerned authorities.

The Bank further explained that the withheld balance is intended for the payment of outstanding house rent, electricity charges, and other liabilities owed to property owners where Smart Telecom’s equipment had been installed. Payments, the Bank said, would be made gradually upon verification and approval from relevant authorities.

In the statement, NIMB Bank emphasized that it has been fully cooperating with investigative agencies by providing all required documents, information, and assistance in a timely manner. The Bank also assured stakeholders that the ongoing investigation has not affected its daily operations, financial governance, customer services, or the interests of depositors and shareholders.

The Bank concluded by expressing gratitude to customers, shareholders, depositors, and Nepal Rastra Bank for their continued trust and support amid the ongoing developments.