Banking

Banks in Nepal: Categories and Financial Services Overview

Banks in Nepal play a crucial role to uplift the Gross domestic product (GDP) of the country because it mobilizes funds and extends credit for productive

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Dec 2, 2024 - 13:23

Nov 29, 2024 - 16:24

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Banks

Introduction towards Bank in Nepal

Banks in Nepal play a crucial role to uplift the Gross domestic product (GDP) of the country because banks in Nepal mobilizes funds and extends credit for productive uses, the banking system is essential to the nation's economic growth. Financial systems are divided into two types of banking and non-banking financial institutions. The banking institutions are commercial banking and Investment banking and non-banking institutions are development banks, financial companies, credit unions, insurance companies, pension funds, provident fund, and mortgaged companies.

Banks

Overview of the banking structure in Nepal

Nepal Rastra Bank, the country's central bank controls the banking industry. As of mid january 2024 there are 20 Commercial Banks in Nepal which include 12 private banks, 5 joint ventures, and 3 public sector banks.

Banks in Nepal classified into four categories

1. Commercial Banks in Nepal

Commercial Banks is the largest and oldest Bank in Nepal. It is the largest contributor banks in Nepal. Which provides a wide range of services such as deposits, loans, remittances, and international trade facilitation. Nepal bank (NBL) is the first commercial Bank in Nepal. It was established in 1937. Nabil Bank is the first private sector bank of Nepal. It started its operation in 1987.

List of ‘A’ Commercial Banks in Nepal

The table below shows the list of ‘A’ Commercial Banks in Nepal along with the paid-up-Capital (As a mid january 2024)

S.No.	Name	Operation Date (A.D.)	Head Office	Paid up Capital	Working Area
1	Nepal Bank Ltd.	1937/11/15	Dharmapath,Kathmandu	1,469.40	National Level
2	Agriculture Development Bank Ltd.	1968/01/21	Ramshahpath, Kathmandu	1,888.44	National Level
3	Nabil Bank Ltd.	2022-07-11*	Beena Marg, Kathmandu	2,705.70	National Level
4	Nepal Investment Mega Bank Ltd.	2023-01-11*	Durbarmarg, Kathmandu	3,412.86	National Level
5	Standard Chartered Bank Nepal Ltd.	1987/02/28	Nayabaneshwor, Kathmandu	942.95	National Level
6	Himalayan Bank Ltd.	2023-02-24*	Kamaladi, Kathmandu	2,165.66	National Level
7	Nepal SBI Bank Ltd.	1993/07/07	Kesharmahal, Kathmandu	1,012.06	National Level
8	Everest Bank Ltd.	1994/10/18	Lazimpat, Kathmandu	1,176.79	National Level
9	Kumari Bank Ltd.	2023-01-01*	Tangal, Kathmandu	2,622.59	National Level
10	Laxmi Sunrise Bank Ltd.	2002/04/03	Hattisar, Kathmandu	2,318.72	National Level
11	Citizens Bank International Ltd.	2007/04/20	Narayanhitipath, Kathmandu	1,420.10	National Level
12	Prime Commercial Bank Ltd.	2007/09/24	Kamalpokhari, Kathmandu	1,940.26	National Level
13	Sanima Bank Ltd.	2012/02/15	Alkapuri, Naxal, Kathmandu	1,358.15	National Level
14	Machhapuchhre Bank Ltd.	2012-07-09*	Lazimpat, Kathmandu	1,162.14	National Level
15	NIC Asia Bank Ltd.	2013-06-30*	Thapathali, Kathmandu	1,491.76	National Level
16	Global IME Bank Ltd.	2023-01-09*	Kamaladi, Kathmandu	3,612.88	National Level
17	NMB Bank Ltd.	2019-09-28*	Babarmahal, Kathmandu	1,836.67	National Level
18	Prabhu Bank Ltd.	2023-01-10*	Babarmahal, Kathmandu	2,354.25	National Level
19	Siddhartha Bank Ltd.	2016-07-21*	Hattisar, Kathmandu	1,409.00	National Level
20	Rastriya Banijya Bank Ltd.	2018-05-02*	Singhadurbarplaza,Kathmandu	1,563.74	National Level

Note

* Joint operation date after Merge / Acquisition
Paid-up capital based on the financial statement of Mid Jan, 2024

What do you mean by Paid-up Capital?

Paid-up capital is the total amount of money that a company has received from its shareholders in exchange for shares of stock. It represents the portion of the company's authorized capital that has been actually paid by the shareholders.

Let’s take an example

Imagine a company “Xyz” plans to issue 1,000 shares at Rs.100 per share.

Total authorized capital: Rs.100,000.

If shareholders pay for 500 shares ( Rs.50,000), this amount becomes the paid-up capital.
Paid-up capital = Rs.50,000.

In Nepal, ‘A’ Commercial Banks should have a minimum capital of Rs. 8 Arba. This is per instruction of Nepal rastra Bank (NRB), they regulate the banking and financial institutions of Nepal. As of mid January 2024 Global IME Bank limited is the largest paid-up capital bank of Nepal. Global IME Bank has 36.12 Arba in capital. Nepal Investment Bank is in the second position with 34.12 Arba in capital. Standard Chartered Bank Nepal has the lowest 9.42 Arba Capital.

2. Development Banks in Nepal

Development Banks in Nepal are the ‘B’ class Bank of Nepal. Nepal rastra Bank (NRB) regulates all the banks and financial institutions. Development Banks are smaller scale compared to Commercial banks. It targets certain sectors like small business and cooperatives. Development Banks of Nepal are divided into different categories based on the working area.

National Level Development Banks
1-5 Districts Development Banks
1-3 Districts Development Banks
1-7 Districts Development Banks

As of there are 17 development banks in Nepal, out of 17 development banks 8 operate at National Level.

List of ‘B’ Development Banks in Nepal

The table below shows the list of ‘B’ Developments Banks in Nepal along with the working area and Paid-up Capital (As a mid january 2024)

S.No.	Name	Operation Date (A.D.)	Head Office	Paid up Capital	Working Area
1	Narayani Development Bank Ltd.	2001/10/17	Ratna Nagar, Chitawan	26.25	1-3 District Level (Nawalparasi, Chitwan, Makawanpur)
2	Karnali Development Bank Ltd.	2004/02/18	Nepalgunj, Banke	50.28	1-5 District Level (Banke, Bardiya, Dang, Pyuthan, Rolpa)
3	Excel Development Bank Ltd.	2005/07/21	Birtamod, Jhapa	124.97	1-5 District Level (Ilam, Jhapa, Morang, Sunsari, Panchthar)
4	Miteri Development Bank Ltd.	2006/10/13	Dharan, Sunsari	111.14	1-5 District Level (Jhapa, Morang, Sunsari, Dhankuta, Udaypur)
5	Muktinath Bikas Bank Ltd.	2007/01/03	Kamaladi, Kathmandu	704.69	National Level
6	Corporate Development Bank Ltd.	2007/11/07	Birgunj, Parsa	52.5	1-5 District Level (Parsa, Bara, Rautahat, Sarlahi, Mohattari)
7	Sindhu Bikas Bank Ltd.	2010/09/09	Barhabise, Sindhupalchowk	55.75	1-5 District Level (Sindhupalchowk, Kavre, Dolkha, Makawanpur, Chitwan)
8	Salapa Bikash Bank Ltd.	2012/07/16	Diktel, Khotang	35	1 District Level (Khotang)
9	Green Development Bank Ltd.	2013/08/25	Pokhara, Kaski	51.9	1-5 District Level (Baglung, Myagdi, Kaski, Tanahu, Nawalparasi East)
10	Sangrila Development Bank Ltd.	2014-07-13*	Baluwatar, Kathmandu	343.1	National Level
11	Shine Resunga Development Bank Ltd.	2013-03-17*	Butawal, Rupandehi	473.37	National Level
12	Jyoti Bikas Bank Ltd.	2016-08-12*	Kamaladi, Kathmandu	439.58	National Level
13	Garima Bikas Bank Ltd.	2021-11-14*	Lazimpat, Kathmandu	518.77	National Level
14	Mahalaxmi Bikas Bank Ltd.	2017-07-02*	Durbar Marg, Kathmandu	417.13	National Level
15	Lumbini Bikas Bank Ltd.	2017-07-09*	Dillibazar, Kathmandu	351.81	National Level
16	Kamana Sewa Bikas Bank Ltd.	2017-08-04*	Gyaneshwor, Kathmandu	328.12	National Level
17	Saptakoshi Development Bank Ltd.	2019-07-07*	Dhankutabazaar, Dhankuta	83.43	1-7 District Level (Morang, Ilam, Panchthar, Jhapa, Sunsari, Dhankuta, Terhathum)

Note

* Joint operation date after Merge / Acquisition
Paid-up capital based on the financial statement of Mid Jan, 2024

3. Financial Companies in Nepal

Financial Companies in Nepali are the ‘C’ class Bank of Nepal. Nepal rastra Bank (NRB) regulates all the banks and financial institutions. Financial institutions' main purpose is to provide various financial services like loan, deposit and investment opportunities. As of mid July 2023, there are 17 'C' Class finance companies in Nepal. Out of 17, 15 are national level financial companies.

List of ‘C’ Financial Companies in Nepal

The table below shows the list of ‘C’ Companies in Nepal along with the working area and Paid-up Capital (As a mid january 2024)

S.No.	Name	Operation Date (A.D.)	Head Office	Paid up Capital	Working Area
1	Nepal Finance Ltd.	2021-07-11*	Kamaladi, Kathmandu	72.95	National Level
2	Nepal Share Markets and Finance Ltd.	1993/10/19	Ramshahapath, Kathmandu	23.33	National Level
3	Goodwill Finance Ltd.	1995/05/15	Hattisar, Kathmandu	94.61	National Level
4	Progressive Finance Ltd.	1996/02/26	Tinkune, Kathmandu	84.81	National Level
5	Janaki Finance Co. Ltd.	1997/03/07	Janakpurdham, Dhanusha	69.05	Province Level (Madhesh Province)
6	Pokhara Finance Ltd.	1997/03/16	Pokhara, Kaski	108.26	National Level
7	Multipurpose Finance Ltd.	1998/04/15	Rajbiraj, Saptari	61.02	1-5 District Level (Saptari, Siraha, Dhanusha, Mahottari, Sarlahi)
8	Samriddhi Finance Company Limited	2001/08/10	Hetauda, Makawanpur	81.89	National Level
9	Capital Merchant Banking & Finance Ltd.	2002/02/01	Battisputali, Kathmandu	93.51	National Level
10	Guheshwori Merchant Banking & Finance Ltd.	2002/06/13	Pulchowk, Lalitpur	101.22	National Level
11	ICFC Finance Ltd.	2004/07/15	Tangal, Kathmandu	118.35	National Level
12	Manjushree Finance Ltd.	2007/10/17	Nayabaneshwor, Kathmandu	135.16	National Level
13	Reliance Finance Ltd.	2014-05-08*	Pradarsani Marg, Kathmandu	112.15	National Level
14	Gorkhas Finance Ltd.	2016-04-10*	Dillibazar, Kathmandu	86.8	National Level
15	Shree Investment & Finance Co. Ltd.	2017-02-01*	Dillibazar, Kathmandu	98.17	National Level
16	Central Finance Ltd.	2017-03-23*	Kupondole, Lalitpur	94.89	National Level
17	Best Finance Ltd.	2018-08-02*	Chabahil, Kathmandu	85.48	National Level

Note

* Joint operation date after Merge / Acquisition
Paid-up capital based on the financial statement of Mid Jan, 2024

4. Micro Finance Companies in Nepal

Micro Financial Companies in Nepali are the ‘D’ class Banks in Nepal. Nepal rastra Bank (NRB) regulates all the banks in Nepal and financial institutions. In Nepal, microfinance companies are classified as 'D' Class financial institutions and play a vital role in providing financial services to low-income individuals and communities that lack access to traditional banking. These companies focus on micro-lending, savings, insurance, and other financial services, primarily targeting rural and underserved populations. As of January 2024, there were 52 microfinance companies in Nepal, including 49 retail microfinance companies and 3 wholesale microfinance companies. The Nepal Rastra Bank classifies microfinance financial institutions as Class "D" banks.

Nepal's microfinance market is divided into three sectors: formal, semi-formal, and informal. The formal sector includes: 17 commercial banks, 10 development banks, 57 finance companies, and 9 rural microfinance banks.

Dr. Harihar Dev Pant is considered the "Founding Father" of microfinance Banks in Nepal. He was the first Executive Chairman of Nirdhan and introduced the Grameen Bank Financial System to Nepal.

List of ‘D’ Micro Finance Companies in Nepal

The table below shows the list of ‘D’ Financial Companies in Nepal along with the working area and Paid-up Capital (As a mid january 2024)

	Name	Operation Date (A.D.)	Head Office	Paid up Capital	Working Area
1	Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd.	1999/07/17	Naxal, Kathmandu	261.21	National Level
2	Deprosc Laghubitta Bittiya Sanstha Ltd.	2001/07/03	Bharatpur, Chitwan	155.11	National Level
3	Chhimek Laghubitta Bittiya Sanstha Ltd.	2001/12/10	Old Baneshwor, Kathmandu	297.72	National Level
4	Swabalamban Laghubitta Bittiya Sanstha Ltd.	2002/02/22	Kamal Pokhari, Kathmandu	145	National Level
5	Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.	2002/03/11	Babarmahal, Kathmandu	380.64	National Level
6	Nerude Laghubitta Bittiya Sanstha Ltd.	2007/06/15	Biratnagar, Morang	73.2	National Level
7	Mithila Laghubitta Bittiya Sanstha Ltd.	2009/04/29	Dhalkebar, Dhanusha	19.6	Province Level (Madhesh Province)
8	Sworojagar Laghubitta Bittiya Sanstha Ltd.	2009/12/16	Banepa, Kavrepalanchowk	62.72	National Level
9	First Microfinance Laghubitta Bittiya Sanstha Ltd.	2009/12/28	Gyaneshwor, Kathmandu	123.38	National Level
10	Kalika Laghubitta Bittiya Sanstha Ltd.	2020-01-08*	Pokhara, Kaski	37.23	National Level
11	Mirmire Laghubitta Bittiya Sanstha Ltd.	2022-08-31*	Banepa, Kavrepalanchowk	66.58	National Level
12	Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd.	2010/11/09	Butwal, Rupandehi	17.01	19 District Level (Kailali, Kanchanpur, Banke, Bardiya, Dang, Kapilvastu, Rupandehi, Nawalparasi East, Nawalparasi West, Chitwan, Parsa, Surkhet, Dadeldhura, Gulmi,Palpa, Tanahu, Arghakhachi, Pyuthan, Salyan)
13	Suryodaya Womi Laghubitta Bittiya Sanstha Ltd.	2022-04-02*	Banepa, Kavrepalanchowk	79.19	National Level
14	Laxmi Laghubitta Bittiya Sanstha Ltd.	2012/06/04	Maharajgunj, Kathmandu	44.17	National Level
15	Himalayan Laghubitta Bittiya Sanstha Ltd.	2012/07/05	Chuchepati , Kathmandu	31.98	National Level
16	Vijaya Laghubitta Bittiya Sanstha Ltd.	2013/03/28	Gaidakot, Nawalparasi	74.5	National Level
17	NMB Laghubitta Bittiya Sanstha Ltd.	2013/03/31	Pokhara-Hemja, Kaski	72.14	National Level
18	Forward Microfinance Laghubitta Bittiya Sanstha Ltd.	2013/05/17	Duhabi Bhaluwa, Sunsari	105.56	National Level
19	Global IME Laghubitta Bittiya Sanstha Ltd.	2013/05/19	Pokhara, Kaski	61.89	National Level
20	Mahuli Laghubitta Bittiya Sanstha Ltd.	2020-11-23*	Bakdhuwa, Saptari	32.24	National Level
21	Meromicrofinance Laghubitta Bittiya Sanatha Ltd.	2013/07/18	Battar, Nuwakot	132	National Level
22	Samata Gharelu Laghubitta Bittiya Sanatha Ltd.	2021-04-15*	Banepa, Kavrepalanchowkpalanchowk	39.42	National Level
23	RSDC Laghubitta Bitiya Sanstha Ltd.	2013/09/11	Butwal, Rupandehi	86.96	National Level
24	Samudayik Laghubitta Bitiya Sanstha Ltd.	2014/04/13	Banepa, Kavrepalanchowk	14.52	4-10 District Level (Sindhupalchowk, Kavrepalanchowk, Dolakha, Ramechhap, Solukhumbu,Okhaldhunga, Nuwakot, Khotang, Bhojpur, Sankhuasabha)
25	National Microfinance Laghubitta Bittiya Sanstha Ltd.	2021-07-14*	Nilkantha, Dhading	108.42	National Level
26	Grameen Bikas Laghubitta Bittiya Sanstha Ltd.	2014-08-15*	Butawal, Rupandehi	98.25	National Level
27	Wean Nepal Laghubitta Bittiya Sanstha Ltd.	2021-11-01*	Banepa, Kavrepalanchowkpalanchowk	7.92	Province Level (Bagmati Province)
28	Unnati Sahakarya Laghubitta Bittiya Sanstha Ltd.	2020-07-10*	Siddarthanagar, Rupandehi	24.69	National Level
29	NADEP Laghubitta Bittiya Sanstha Ltd.	2015/05/15	Gajuri, Dhading	48.58	National Level
30	Support Laghubitta Bittiya Sanstha Ltd.	2015/07/12	Hasposa, Itahari	9.52	Province Level (Koshi Province)
31	Aarambha Chautari Laghubitta Bittiya Sanstha Ltd.	2021-11-16*	Banepa, Kavrepalanchowk	36.71	National Level
32	Asha Lagubitta Bittiya Sastha Ltd.	2016/08/29	Madanpur Nuwakot	64.16	National Level
33	Gurans LaghuBitta Bittiya Sastha Ltd.	2016/11/16	Dhankutabazaar, Dhankuta	10.14	Province Level (Koshi Province)
34	Ganapati Laghubitta Bittiya Sastha Ltd.	2016/12/09	Shuklagandaki, Tanahu	15.16	National Level
35	Infinity Laghubitta Bittiya Sanstha Ltd	1900/01/10	Gaidakot, Nawalparasi	49.74	National Level
36	Swabhiman Laghubitta Bittiya Sanstha Ltd.	2017/05/22	Tilottama, Rupandehi	14.61	Province Level (Lumbini Province)
37	Sabaiko Laghubitta Bittiya Sanstha Ltd.	2017/07/14	Bandipur, Tanahu	31.86	National Level
38	Sadhana Laghubitta Bittiya Sanstha Ltd.	2017/10/30	Gorkha, Gorkha	38.23	National Level
39	NIC Asia Laghubitta Bittiya Sanstha Ltd.	2021-03-21*	Banepa, Kavrepalanchowk	173.94	National Level
40	Manakamana Smart Laghubitta Bittiya Sanstha Ltd.	2020-07-26*	Siddarthanagar, Ruphandehi	14.85	Province Level (Lumbini Province)
41	Samaj Laghubitta Bittiya Sanstha Ltd.	2018/05/15	Malangawa,Sarlahi	2.29	1-3 District Level (Sarlahi, Mahottari, Dhanusha)
42	Mahila Laghubitta Bittiya Sanstha Ltd.	2018/10/18	Banepa, Sanga, Kavrepalanchok	21.76	National Level
43	Manushi Laghubitta Bittiya Sanstha Ltd.	2018/11/17	Banepa, Bhaisepati, Kavrepalanchok	10.94	National Level
44	Unique Nepal Laghubitta Bittiya Sanstha Ltd.	2022-01-14*	Kohalpur, Banke	14.86	4 - 10 District (Bardiya, Banke, Kailali, Kanchanpur, Dang, Kapilbastu,Rupandehi, Nawalparasi, Surkhet, Dadeldhura)
45	Jalpa Samudayik Laghubitta Bittiya Sanstha Limited	2020-12-01*	Butwal, Rupandehi	18.28	National Level
46	Upakar Laghubitta Bittiya Sanstha Limited	2019/03/27	Kohalpur, Banke	10.61	Province Level (Lumbini Province)
47	Dhaulagiri Laghubitta Bittiya Sanstha Limited	2019/02/19	Baglung -2 , Baglung	13.31	National Level
48	CYC Nepal Laghubitta Bittiya Sanstha Limited	2023-03-14*	Pokhara, Kaski	26.64	National Level
49	NESDO Samriddha Laghubitta Bittiya Sanstha Limited	2019/03/05	Kushma, Parbat	25.5	National Level
50	Swastik Laghubitta Bittiya Sanstha Limited	2019/03/26	Lahan, Siraha	1.2	Province Level (Madhesh Province)
51	Shrijanshil Laghubitta Bittiya Sanstha Limited	2019/03/15	Golbazar, Siraha	10.94	National Level
52	Kisan Laghubitta Bittiya Sanstha Limited	2020-07-13*	Dhanagadhi, Kailali	50.44	National Level
53	Jeevan Bikash Laghubitta Bittiya Sanstha Limited	2020-09-07*	Katahari , Morang	118.2	National Level
54	BPW Laghubitta Bittiya Sanstha Limited	2019/04/15	Banepa, Kavrepalanchowk	3	Province Level (Bagmati Province)
55	Aatmanirbhar Laghubitta Bittiya Sanstha Limited	2019/04/15	Ghorahi, Dang	6.86	Province Level (Lumbini Province)
56	Super Laghubitta Bittiya Sanstha Limited	2020/01/15	Tulshipur, Dang	1.95	Province Level (Lumbini Province)
57	Aviyan Laghubitta Bittiya Sanstha Limited	2019/12/17	Panauti, Kavrepalanchowk	25	National Level

Note

* Joint operation date after Merge / Acquisition
Paid-up capital based on the financial statement of Mid Jan, 2024

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Conclusion

Banks in Nepal play a crucial role to uplift the Gross domestic product (GDP) of the country because banks in Nepal mobilizes funds and extends credit for productive.Overall, banks in Nepal are key drivers of economic stability and growth. As Nepal continues to develop, the role of banks in Nepal will remain critical in shaping its financial landscape.