Siddhartha Bank clarifies false news on branch manager’s arrest

KATHMANDU: Siddhartha Bank has taken serious notice of the news published/broadcasted by various media outlets regarding the arrest of “Branch Manager Arna Bahadur Balampaki at Janakpur Branch” and the allegations of “irregularities in the loan recovery process at the bank.”

As the news conveyed has created confusion among the bank, its customers, stakeholders, and the general public, and is far from the truth, it is deemed necessary to issue this press release to clarify the factual details for the information of all concerned parties.

It is to inform that, after the borrowers who availed loans from the Sheereshwor Branch and Janakpur Branch failed to make the required principal and interest payments beyond the stipulated time, the bank repeatedly corresponded with them both verbally and in writing.

Public notice was issued for 35 days, informing them of the outstanding payments. Since the loan settlement was not made within this period, as per the law, further loan recovery proceedings were initiated, and a second notice for the sale of collateral was published.

Following proper procedures, bids were received, and after completing the necessary processes, the accepted bid was approved for the transfer of property in the name of the successful bidder.

The bank followed the existing legal process and standard banking practices in conducting the collateral auction. However, some individuals, in coordination with the borrowers/guarantors, expressed disagreement with the auction process.

On the 11th, 12th, and 14th of Poush 2081, these individuals staged protests and chanted slogans at the bank’s offices at Vidyapati Chowk, Ramanand Chowk, and Janakpur Branch, thereby obstructing the bank’s operations.

The bank coordinated with local security agencies and informed them of the situation. After representatives from the security agencies visited the Janakpur Branch, it was decided, upon their suggestion, that discussions would take place at the District Police Office.

On the 11th of Poush 2081, the bank’s branch manager and the loan officer went to the police office for the necessary discussion.

During this time, certain individuals filmed a video of the event, and based on this, false news was spread that the branch manager was arrested. We clarify that this information is not true and that the bank followed the lawful procedure for the loan recovery process, as per the approved loan terms.

The bank’s action in conducting the collateral auction followed the prevailing legal processes and banking practices. If any party is dissatisfied with this process, they have the right to seek judicial remedies through competent authorities, as per the law.

The bank believes that it is inappropriate to obstruct the services of such a sensitive institution as a bank by resorting to actions outside of the legal framework.

Furthermore, the bank requests that an environment be created where essential services provided by the bank can continue uninterrupted.