Have you ever wondered, how many commercial banks in Nepal are there in the year 2022? and which bank was the first commercial bank in Nepal? also their interest rates and paid-up capital?
Today I will try to answer all of your questions in this single article. First of all, let’s distinguish financing sectors.
Nepal Rastra Bank has categorized the Nepali Banking and Financing System (NBFS) or Bank and Financial Institutions (BFIs) into four different sectors.
Commercial banks are larger institutions that provide many financial products and services. Some of 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”)
List of Commercial banks in Nepal, Operation Date, and Head Office
Before listing commercial banks of Nepal let us know how many are there in Nepal. there are a total of 27 commercial banks in Nepal as of April 2022. These banks are working on the national level and the first commercial bank is in operation since 1937 A.D.
After Global IME Bank and Janata Bank’s successful merger, we currently have 27 commercial banks in Nepal.
|No.||Bank’s Name||Operation Date (A.D)||Head Office|
|1||Nepal Bank Ltd.||1937/11/15||Dharmapath, KTM|
|2||Agriculture Development Bank Ltd.||1968/01/21||Ramshahpath, KTM|
|3||Nabil Bank Ltd.||1984/07/12||Beena Marg, KTM|
|4||Nepal Investment Bank Ltd.||1986/03/09||Durbarmarg, KTM|
|5||Standard Chartered Bank Nepal Ltd.||1987/02/28||Nayabaneshwor, KTM|
|6||Himalayan Bank Ltd.||1993/01/18||Kamaladi, Kathmandu|
|7||Nepal SBI Bank Ltd.||1993/07/07||Kesharmahal, KTM|
|8||Nepal Bangladesh Bank Ltd.||1994/06/06||Kamaladi, Kathmandu|
|9||Everest Bank Ltd.||1994/10/18||Lazimpat, Kathmandu|
|10||Kumari Bank Ltd.||2001/04/03||Durbarmarg, KTM|
|11||Laxmi Bank Ltd.||2002/04/03||Hattisar, Kathmandu|
|12||Citizens Bank International Ltd.||2007/04/20||Narayanhitipath, KTM|
|13||Prime Commercial Bank Ltd.||2007/09/24||Kamalpokhari, KTM|
|14||Sunrise Bank Ltd.||2007/10/12||Gairidhara, Kathmandu|
|15||Century Commercial Bank Ltd.||2011/03/10||Putalisadak, KTM|
|16||Sanima Bank Ltd.||2012/02/15||Nagpokhari, KTM|
|17||Machhapuchhre Bank Ltd. *||2012/07/09||Lazimpat, Kathmandu|
|18||NIC Asia Bank Ltd. * (Bank Of Asia)||2013/06/30||Thapathali, Kathmandu|
|19||Global IME Bank Ltd. * (JBNL)||2019/09/04||Kamaladi, Kathmandu|
|20||NMB Bank Ltd. *||2019/09/28||Babarmahal, KTM|
|21||Prabhu Bank Ltd. *||2016/2/12||Babarmahal, KTM|
|22||Siddhartha Bank Ltd. *||2016/7/21||Hattisar, Kathmandu|
|23||Bank of Kathmandu Ltd. * (Lumbini Bank)||2016/7/14||Kamalpokhari, KTM|
|24||Civil Bank Ltd. *||2016/10/17||Kamaladi, Kathmandu|
|25||Nepal Credit and Commerce Bank Ltd. *||2017/01/01||Bagbazar, Kathmandu|
|26||Rastriya Banijya Bank Ltd. *||2018/05/02||Singhadurbarplaza, KTM|
|27||Mega Bank Nepal Ltd. *||2018/05/13||Kamaladi, Kathmandu|
Note: (*) Joint venture date after merge
Top 3 Commercial Banks of Nepal in 2022
Banks play an important role in the stability of the economy of a country. Here are the top three banks of Nepal in terms of Paid-up capital, and deposits as of January 2022.
You can apply for IPO through these banks here is the list of upcoming IPO in Nepal 2022.
1. NIC Asia Bank
NIC ASIA Bank was established on 21st July 1998. The Bank was given a new name as 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 are round 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 in Nepal
The function of commercial banks can be classified into different parts Primary, secondary, and Utility functions. here we are going to talk about only the primary function of a bank.
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 we can. 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 rate of interest and the bank’s high amount of income is from providing loans to the customers.
Frequently asked questions about Commercial banks of Nepal
First commercial bank in Nepal
Nepal Bank Limited is the first commercial bank in Nepal. established on November 15, 1937 A.D.
How many commercial banks in Nepal in 2022
Currently, there are 27 commercial banks in Nepal after the merger. Out of 27 three banks are government-owned.
Interest rates of commercial banks in Nepal
Interest rates are almost the same in every bank but roughly saving has 6.03%/8.03% and 3 months and above has 11.03 for FD.
Which is the best commercial bank in Nepal
In terms of deposit NIC Asia Bank, Global IME Bank and Rastriya Banijya Bank has the highest amount.