Introduction to Commercial Banks in Nepal
What Are Commercial Banks?
Commercial banks are financial institutions that accept deposits, offer loans, and provide various financial services to individuals, businesses, and governments. These banks primarily earn revenue through interest on loans and fees for services.
Evolution of Banking Sector in Nepal
Nepal’s banking history started in 1937 with the establishment of Nepal Bank Limited. The industry has since expanded, with significant reforms introduced after the liberalization policy of the 1980s. Today, Nepal’s banking sector consists of commercial banks (Class ‘A’), development banks (Class ‘B’), and finance companies (Class ‘C’).
Role of Commercial Banks in Economic Development
Commercial banks are crucial for:
- Mobilizing national savings
- Providing loans for infrastructure, agriculture, and industries
- Facilitating foreign trade through remittances and foreign exchange services
- Promoting entrepreneurship and small businesses
List of Commercial Banks in Nepal (2025 Update)
Nepal Rastra Bank (NRB) categorizes commercial banks as Class ‘A’ banks. As of 2025, 20 licensed commercial banks operate in Nepal.
Class ‘A’ Commercial Banks in Operation
Some leading commercial banks include:
- Nabil Bank Limited
- NIC Asia Bank Limited
- Global IME Bank Limited
- Nepal Investment Mega Bank Limited
- Himalayan Bank Limited
- Everest Bank Limited
- NMB Bank Limited
- Prabhu Bank Limited
- Standard Chartered Bank Nepal Limited
- Agricultural Development Bank Limited
- Sanima Bank Limited
- Siddhartha Bank Limited
- Nepal SBI Bank Limited
- Machhapuchhre Bank Limited
- Citizens Bank International Limited
- Prime Commercial Bank Limited
Merged and Acquired Banks: Recent Trends
Nepal’s banking industry has undergone significant consolidation in recent years. Mergers between banks were encouraged by NRB to strengthen the financial system. For example:
- Nepal Investment Bank and Mega Bank merged to form Nepal Investment Mega Bank.
- Kumari Bank merged with Nepal Credit and Commerce Bank.
Upcoming Changes in Nepal’s Banking Landscape
With NRB’s continued push for strengthening the financial sector, further mergers are expected, aimed at increasing capital adequacy and operational efficiency.
Functions and Services Provided by Commercial Banks
Commercial banks in Nepal provide a wide range of services:
Deposit Collection and Saving Accounts
Banks offer current, savings, and fixed deposit accounts for individuals and organizations, providing secure means to save money.
Loan and Credit Facilities
Major loan products include:
- Personal loans
- Business loans
- Agriculture loans
- Housing and home loans
- Overdraft and working capital loans
Foreign Exchange and Remittance Services
Given Nepal’s significant reliance on remittances, commercial banks play a key role in currency exchange and secure fund transfers from abroad.
Digital and Mobile Banking Innovations
Nepali commercial banks have rapidly embraced digital transformation. Mobile banking apps, QR code payments, online bill payments, and ATM networks are widely available.
Regulatory Framework for Commercial Banks in Nepal
Commercial banks in Nepal operate under strict supervision and regulation.
Role of Nepal Rastra Bank (NRB) as Regulatory Authority
NRB, established as Nepal’s central bank, ensures the soundness of the banking system by:
- Licensing commercial banks
- Monitoring financial health and compliance
- Enforcing prudential guidelines
Key Legal Provisions from BAFIA
The Banking and Financial Institutions Act (BAFIA), 2073, provides the primary regulatory framework for banks in Nepal. It covers aspects like capital requirements, permissible banking activities, governance structures, and penalties for non-compliance.
Compliance and Corporate Governance Guidelines
Banks must adhere to NRB’s guidelines on risk management, internal controls, anti-money laundering (AML), and good governance practices. Independent boards, audit committees, and transparent reporting are mandatory.
Major Commercial Banks of Nepal: Profiles and CEOs
Overview of Leading Commercial Banks
Nepal’s top commercial banks are recognized for their financial strength, customer reach, and digital innovation. Banks like Nabil, NIC Asia, and Global IME consistently rank among the largest by assets and profits.
Current CEOs of Major Commercial Banks (2025)
- Nabil Bank Limited: Manoj Kumar Gyawali
- NIC Asia Bank Limited: Roshan Kumar Neupane
- Global IME Bank Limited: Surendra Raj Regmi
- Nepal Investment Mega Bank Limited: Jyoti Prakash Pandey
- Himalayan Bank Limited: Ashok SJB Rana
- Everest Bank Limited: Sudesh Khaling
- NMB Bank Limited: Govinda Ghimire
- Prabhu Bank Limited: Ashok Sherchan
- Standard Chartered Bank Nepal: Gorakh Rana
- Agricultural Development Bank Limited: Govinda Gurung
Branch Network and Customer Base of Top Banks
- NIC Asia Bank: 360+ branches
- Global IME Bank: 400+ branches
- Nabil Bank: 250+ branches These banks serve millions of customers across Nepal, with extensive ATM networks and digital banking platforms.
Challenges and Opportunities in Nepal’s Commercial Banking Sector
Challenges Faced by Commercial Banks in Nepal
- Limited access to remote regions
- Rising non-performing loans (NPLs)
- Regulatory compliance burdens
- Cybersecurity risks in digital banking
Opportunities for Growth and Expansion
- Expanding digital financial inclusion in rural areas
- Leveraging remittance flows for investment products
- Introducing innovative financial products like green financing and sustainable loans
Future of Digital Banking in Nepal
Digital transformation will define the future of Nepali banking. With growing smartphone penetration, mobile-first banking, digital wallets, and fintech collaborations are expected to dominate.
Conclusion: The Growing Importance of Commercial Banks in Nepal’s Economy
Commercial banks are indispensable pillars of Nepal’s financial system. With robust regulations, digital innovation, and a focus on customer-centric services, Nepal’s banking sector is poised for sustained growth. Strengthening governance, embracing technology, and focusing on financial inclusivity will ensure that commercial banks continue to fuel Nepal’s economic development in the years ahead.