There are 21 Commercial Banks in Nepal as of 16th May 2023. After 10 different banks either merged or were acquired.
Nepal Rastra Bank has categorized the Nepali Banking and Financing System (NBFS) or Bank and Financial Institutions (BFIs) into four sectors.
Commercial banks are larger institutions that provide many financial products and services. These include checking accounts, credit cards, mortgages, student loans, and small business loans.
- Commercial Banks (Class “A”)
- Development Banks (Class “B”)
- Finance Company and (Class “C”)
- Micro Finance (Class “D”)
FD Interest Rates of Commercial Banks in Nepal 2023
List of Commercial Banks in Nepal 2023
As of May 2023, there are currently 21 commercial banks resulting from recent mergers and acquisitions that have consolidated the banking industry.
These banks are working nationally, and the first commercial bank that has operated since 1937 A.D. is Nepal Bank Limited.
Below is the list of commercial banks in Nepal 2023, their operation dates, and their head office address.
No. | Bank | Operation Date (A.D) | Paid Up Capital | Head Office |
---|---|---|---|---|
1 | Nepal Bank Ltd. | 1937/11/15 | 1469.40 | Dharmapath |
2 | Agriculture Development Bank Ltd. | 1968/01/21 | 1888.44 | Ramshahpath |
3 | Nabil Bank Ltd. * | 1984/07/12 | 2705.70 | Beena Marg |
4 | Nepal Investment Mega Bank Ltd * | 2023/01/11 | 3412.86 | Durbarmarg |
5 | Standard Chartered Bank Nepal Ltd. | 1987/02/28 | 942.95 | Nayabaneshwor |
6 | Himalayan Bank Ltd. * | 1993/01/18 | 2165.66 | Kamaladi |
7 | Nepal SBI Bank Ltd. | 1993/07/07 | 1012.06 | Kesharmahal |
8 | Everest Bank Ltd. | 1994/10/18 | 1069.81 | Lazimpat |
9 | Kumari Bank Ltd. * | 2023/01/01 | 2622.59 | Durbarmarg |
10 | Laxmi Bank Ltd. | 2002/04/03 | 1155.13 | Hattisar |
11 | Citizens Bank International Ltd. | 2007/04/20 | 1420.10 | Narayanhitipath |
12 | Prime Commercial Bank Ltd. | 2007/09/24 | 1940.26 | Kamalpokhari |
13 | Sunrise Bank Ltd. | 2007/10/12 | 1011.89 | Gairidhara |
14 | Sanima Bank Ltd. | 2012/02/15 | 1246.01 | Nagpokhari |
15 | Machhapuchhre Bank Ltd. * | 2012/07/09 | 1025.72 | Lazimpat |
16 | NIC Asia Bank Ltd. * | 2013/06/30 | 1156.40 | Thapathali |
17 | Global IME Bank Ltd. * | 2023/01/09 | 3577.11 | Kamaladi |
18 | NMB Bank Ltd. * | 2019/09/28 | 1836.67 | Babarmahal |
19 | Prabhu Bank Ltd. (Century Bank) * | 2023/01/10 | 2354.25 | Babarmahal |
20 | Siddhartha Bank Ltd. * | 2016/7/21 | 1409.00 | Hattisar |
21 | Rastriya Banijya Bank Ltd. * | 2018/05/02 | 1463.74 | Singhadurbarplaza |
Note: (*) Joint venture date after merge | paid-up capital (Rs. in Crore)
CASBA Charge of Nepali Banks in 2023
Merger and Acquisition of Nepali Banks in 2023
No | Bank | Merger | Acquisition |
---|---|---|
1 | Nabil Bank | Acquired “Nepal Bangladesh Bank“ |
2 | Nepal Investment Mega Bank | Merger with Mega Bank Nepal Limited |
3 | Himalayan Bank | Merger with Civil Bank Limited |
4 | Prabhu Bank | Acquired “Century Bank Limited“ |
5 | Global IME Limited | Merger with Bank of Kathmandu |
6 | Kumari Bank Ltd. | Merged with Nepal Credit & Commerce Bank |
An agreement has been signed between Lakxmi Bank and Sunrise Bank for a merger. Also, Nabil and Nepal Bangladesh Bank will merge.
Top 3 Commercial Banks of Nepal
Banks play an important role in the stability of a country’s economy. Here are the top three banks of Nepal in terms of Paid-up capital and deposits as of January 2022.
1. NIC Asia Bank
NIC ASIA Bank was established on 21st July 1998. The Bank was given a new name NIC ASIA Bank, after the merger of NIC Bank with Bank of Asia Nepal on 30th June 2013. NIC ASIA Bank has a paid-up capital of Rs. 11.56 billion. Currently, 299.34 Arba deposits have been noted. EPS is around rs 41.54
CEO: Mr. Roshan Kumar Neupane
2. Global IME Bank
After the successful merger of Global Bank Ltd (an “A” class commercial bank), IME Financial Institution (a “C” class finance company), and Lord Buddha Finance Ltd. (a “C” class finance company) in 2012, the bank has a paid-up capital of Rs. 21.63 billion. Has deposits of Rs 280.81 Arba, and EPS is around rs 22.39.
CEO: Mr. Ratna Raj Bajracharya
3. Rastriya Banijya Bank Ltd.
Rastriya Banijya Bank was established on January 23, 1966. A.D. is a state-owned enterprise established “To provide innovative banking services to everyone, every time and everywhere for the economic development of the nation”. Rs 244.21 Arba deposits have been noted. Also, EPS is around rs 27.54.
CEO: Mr. Kiran Kumar Shrestha
Functions of Commercial Banks
The function of commercial banks can be classified into different parts Primary, secondary, and Utility functions. Here we will talk about only a bank’s primary function.
1. Accepting Deposit
Banks operate on customer deposits, so their primary objective is to gain more customers and convince us to deposit as much as possible. In return, they give interest to the customer.
2. Providing Loan
After taking money from their depositor, ‘s bank’s main focus is to give out loans at a higher interest rate, and the bank’s high income is from providing loans to the customers.
FAQs
Nepal Bank Limited is the first commercial bank in Nepal. Established on November 15, 1937, A.D.
In Nepal, as of May 2023, there are currently 21 commercial banks resulting from recent mergers and acquisitions that have consolidated the banking industry.
The comparison of Commercial Banks is made by their security and ability to provide customer service, so, not very sure which bank is the best.
Commercial banks merged are Kumari and NCC Bank, Global IME and Bank of Kathmandu, Prabhu and Century Bank, and Nepal Investment and Mega Bank.
They are operating as Kumari Bank Limited after the successful merger on 1st January 2023.
After the two commercial banks joined on Monday, 9th January 2023, they became known as Global IME Bank.
The operation started on 10th January 2023 and was named their bank “Prabhu Bank Limited.”
After the merger and operation from 11th January 2023, they became known as Nepal Investment Mega Bank,
Four banks are currently in preliminary agreement Lakxmi Bank and Sunrise Bank for a merger. Also, Nabil and Nepal Bangladesh Bank