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list of banks in Nepal: Nepal is home to a wide variety of banks and financial institutions to meet the financial demands of its inhabitants and enterprises, each of which provides a special set of services. Institutions like banks are crucial in contemporary economies. They support financial security, economic expansion, and the smooth operation of the financial markets. 

The early 20th century is when Nepal’s financial history began. In 1937 AD (1994 BS), Nepal Bank Limited, the nation’s first bank, was founded. However, the banking industry only really started to take off until the economy was liberalized in the 1950s. The establishment of several financial institutions during this period laid the groundwork for the current, booming banking industry.

List of Banks in Nepal

In Nepal, banks are categorized into four types based on their operational functions and the overall value of the bank.  Factors such as size, services offered, and financial standing are also looked at while categorizing banks.

  1. Class ‘A’ Banks: Commercial Bank
  2. Class ‘B’ Banks: Development Bank
  3. Class ‘C’ Banks: Finance companies
  4. Class ‘D’ Banks: Micro Finance Financial Institutions

What is a Commercial Bank?

Commercial Banks are also known as A-Class Banks, which are rated by the Central Bank of Nepal i.e. Nepal Rastra Bank. The most typical bank in Nepal is a commercial bank. Among the many services, they provide loans, fixed deposits, foreign exchange services, savings, and current accounts. Standard Chartered Bank Nepal, Himalayan Bank Limited, and Nepal Investment Bank Limited are a few of the well-known commercial banks in Nepal.

According to the latest data of 24 February 2023, there are 20 Commercial Banks in Nepal. Their execution is on the National level.

List of Commercial Banks in Nepal

 

Bank Name Establishment Year Headquarters Paid-up Capital (in NPR)
Agriculture Development Bank1968Ramshahpath, Kathmanduरु 18.88 Arab
Nepal Bank1937Dharmapath, Kathmanduरु 14.69 Arab
Rastriya Banijya Bank1966Singhadurbarplaza, Kathmanduरु 14.64 Arab
Citizens Bank International2007Narayanhitipath, Kathmanduरु 14.20 Arab
Everest Bank1994Lazimpat, Kathmanduरु 10.70 Arab
Global IME Bank2023Kamaladi, Kathmanduरु 35.77 Arab
Himalayan Bank1993Kamaladi, Kathmanduरु 21.66 Arab
Kumari Bank2023Durbarmarg, Kathmanduरु 26.23 Arab
Laxmi Sunrise Bank2023Hattisar, Kathmanduरु 21.67 Arab
Machhapuchhre Bank2012Lazimpat, Kathmanduरु 10.26 Arab

What is the Development Bank?

Development Banks are also known as B-Class Banks, which are rated by the Central Bank of Nepal i.e. Nepal Rastra Bank. In Nepal, development banks are primarily concerned with providing funding to various industries, including agriculture, tourism, and small and medium-sized businesses (SMEs). 

According to the latest data of January 2023, there are 17 Development Banks in Nepal. Their execution is both on the National level and District level. Development Banks are categorized on the following basis:

  • National Level Development Banks have a minimum Paid-up Capital of  2,500,000,000 and execute at the National Level.
  • District Level Development Banks that execute in 4-10 districts have a minimum Paid-up Capital of  1,200,000,000.
  • District Level Development Banks that execute in a maximum of 3 districts have a minimum Paid-up Capital of 500,000,000.

List of  Development Banks in Nepal

S.NBank NameHeadquartersPaid-up Capital (in NPR)
1Muktinath Bikash BankKamaladi, Kathmanduरु 6.43 Arab
2Garima Bikas BankLazimpat, Kathmanduरु 5.19 Arab
3Mahalaxmi Development BankDurbar Marg, Kathmanduरु 4.17 Arab
4Jyoti Bikas BankKamaladi, Kathmanduरु 4.40 Arab
5Shine Resunga Development BankButwal, Lumbiniरु 4.28 Arab
6Lumbini Bikas BankDillibazaar, Kathmanduरु 3.38 Arab
7Sangrila Development BankBaluwatar, Kathmanduरु 3.01 Arab
8Kamana Sewa Bikas BankGyaneshwor, Kathmanduरु 3.14 Arab
9Saptakoshi Development BankDhankuta, Koshiरु 0.83 Arab
10Excel Development BankBirtamod, Koshiरु 1.25 Arab
11Miteri Development BankDharan, Koshiरु 1.02 Arab
12Narayani Development BankRatnanagar, Bagmatiरु 0.26 Arab
13Salapa Bikash BankDiktel, Koshiरु 0.35 Arab
14Sindhu Bikas BankBarhabise, Bagmatiरु 0.56 Arab
15Green Development BankPokhara, Gandakiरु 0.52 Arab
16Corporate Development BankBirgunj, Madheshरु 0.50 Arab
17Karnali Development BankNepalgunj, Lumbiniरु 0.50 Arab

What are Micro Finance (सूक्ष्म वित्त) Companies?

Micro Finance Companies are those financial institutions that are rated as D-Class Banks, by the Nepal Rastra Bank. Small finance companies don’t need a lot of money compared to big ones. Even if they have more than the smallest amount required, they can’t become bigger financial institutions or banks.

As of January 2023, there are 57 microfinance companies in Nepal. Out of these, 3 are bigger types (wholesale microfinance), and the other 54 are retail microfinance companies.

List of retail microfinance (सूक्ष्म वित्त) companies

 
S.NMicrofinance CompanyOperation Date (A.D.)Head Office
1Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd.7/17/1999Naxal, Kathmandu
3Deprosc Laghubitta Bittiya Sanstha Ltd.7/3/2001Bharatpur, Chitwan
4Chhimek Laghubitta Bittiya Sanstha Ltd.12/10/2001Old Baneshwor, Kathmandu
5Swabalamban Laghubitta Bittiya Sanstha Ltd.2/22/2002Kamal Pokhari, Kathmandu
6Nerude Laghubitta Bittiya Sanstha Ltd.6/15/2007Biratnagar, Morang
7Mithila Laghubitta Bittiya Sanstha Ltd.4/29/2009Dhalkebar, Dhanusha
8Sworojagar Laghubitta Bittiya Sanstha Ltd.12/16/2009Banepa, Kavre
9Kalika Laghubitta Bittiya Sanstha Ltd.2020/01/08*Pokhara, Kaski
10Mirmire Laghubitta Bittiya Sanstha Ltd.9/23/2010Banepa, Kavre
11Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd.11/9/2010Butwal, Rupandehi
12Suryodaya Womi Laghubitta Bittiya Sanstha Ltd.2022/04/02*Banepa, Kavre
13Laxmi Lighubitta Bittiya Sanstha Ltd.6/4/2012Maharajgunj, Kathmandu
14Vijaya Laghubitta Bittiya Sanstha Ltd.3/28/2013Gaidakot, Nawalparasi
15NMB Laghubitta Bittiya Sanstha Ltd.3/31/2013Pokhara-Hemja, Kaski
16Forward Microfinance Bittiya Sanstha Ltd.5/17/2013Duhabi Bhaluwa, Sunsari
17Global IME Laghubitta Bittiya Sanstha Ltd.5/19/2013Pokhara, Kaski
18Mahuli Laghubitta Bittiya Sanstha Ltd.2020/11/23*Bakdhuwa, Saptari
19Meromicrofinance Laghubitta Bittiya Sanatha Ltd.7/18/2013Battar, Nuwakot
20Samata Gharelu Laghubitta Bittiya Sanatha Ltd.2021-04-15*Banepa, Kavrepalanchowk
21Samudayik Laghubitta Bitiya Sanstha Ltd.4/13/2014Banepa, Kavre
22National Microfinance Laghubitta Bittiya Sanstha Ltd.7/2/2014Nilkantha, Dhading
23Grameen Bikas Laghubitta Bittiya Sanstha Ltd.2014/8/15*Butwal, Rupandehi
24WEAN Nepal Laghubitta Bittiya Sanstha Limited2021-11-01*Phataksila, Sindhupalchok
25Unnati Sahakarya Laghubitta Bittiya Sanstha2020/07/10*Siddarthanagar, Rupandehi
26NADEP Laghubitta Bittiya Sanstha Ltd.5/15/2015Gajuri, Dhading
27Support Microfinance Bittiya Sanstha Ltd.7/12/2015Hasposa, Itahari
28Aarambha Chautari Laghubitta Bittiya Sanstha1/3/2016Butwal, Rupandehi
29Asha Lagubitta Bittiya Sastha Ltd.8/29/2016Madanpur Nuwakot
30Gurans Laghubitta Bittiya Sastha Ltd.11/16/2016Dhankutabazaar, Dhankuta
31Ganapati Microfinance Bittiya Sastha Ltd.12/9/2016Shuklagandaki, Tanahu
32Infinity Laghubitta Bittiya Sanstha Ltd1/20/2017Gaidakot, Nawalparasi
33Swabhiman Laghubitta Bittiya Sanstha Ltd.5/22/2017Tilottama, Rupandehi
34Sabaiko Laghubitta Bittiya Sanstha Ltd.7/14/2017Bandipur, Tanahu
35Sadhana Laghubitta Bittiya Sanstha Ltd.10/30/2017Gorkha, Gorkha
36NIC Asia Laghubitta Bittiya Sanstha Ltd.2021/03/21*Banepa, Kavrepalanchowk
37Manakamana Smart Laghubitta Bittiya Sanstha Ltd.2020/07/26*Siddarthanagar, Ruphandehi
38Samaj Laghubitta Bittiya Sanstha Ltd.5/15/2018Malangawa, Sarlahi
39Mahila Laghubitta Bittiya Sanstha Ltd.10/18/2018Banepa, Sanga, Kavrepalanchok
40Manushi Laghubitta Bittiya Sanstha Ltd.11/17/2018Banepa, Bhaisepati, Kavrepalanchok
41Unique Nepal Laghubitta Bittiya Sanstha Ltd.2022/01/14*Kohalpur, Banke
42Jalpa Laghubitta Bittiya Sanstha Limited2020-12-01*Butwal, Rupandehi
43Upakar Laghubitta Bittiya Sanstha Limited3/27/2019Kohalpur, Banke
44Dhaulagiri Laghubitta Bittiya Sanstha Limited2/19/2019Baglung -2, Baglung
45CYC Nepal Laghubitta Bittiya Sanstha Limited3/15/2019Pokhara, Kaski
46NESDO Samriddha Laghubitta Bittiya Sanstha Limited3/5/2019Kushma, Parbat
47Swastik Laghubitta Bittiya Sanstha Limited3/26/2019Lahan, Siraha
48Shrijanshil Laghubitta Bittiya Sanstha Limited3/15/2019Golbazar, Siraha
49Kisan Laghubitta Bittiya Sanstha Limited2020/07/13*Dhanagadhi, Kailali
50Jeevan Bikash Laghubitta Bittiya Sanstha Limited2020/09/07*Katahari, Morang
51BPW Laghubitta Bittiya Sanstha Limited4/15/2019Banepa, Kavrepalanchok
52Aatmanirbhar Laghubitta Bittiya Sanstha Limited4/15/2019Ghorahi, Dang
53Super Laghubitta Bittiya Sanstha Limited1/15/2020Tulshipur, Dang
54Aviyan Laghubitta Bittiya Sanstha Limited12/17/2019Panauti, Kavre
55Himalayan laghubitta01/12/2067Chabahil, Kathmandu, Nepal

List of wholesale microfinance companies

S.NMicrofinance CompanyOperation Date (A.D.)Head Office
1Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.3/11/2002Babarmahal, Kathmandu
2First Microfinance Laghubitta Bittiya Sanstha Ltd.12/28/2009Gyaneshwor, Kathmandu
3RSDC Laghubitta Bitiya Sanstha Ltd9/11/2013Butwal, Rupandehi

What is the Infrastructure Development Bank?

The Infrastructure Development Bank is a Financial Institution without a specific classification, authorized by the Nepal Rastra Bank. As of June 2023, there is a single financial institution falling under this category.

  • Nepal Infrastructure Bank Limited (NIFRA)

Importance of banks in Nepal

In the contemporary economic system and society, banks are essential. They are important on many levels to people, organizations, and governments. The following are some critical facets of banks’ significance:

  • Secure Deposits: Banks provide a secure location to store cash, lowering the chance of loss or theft.
  • Credit Access: They give people and companies loans and credit lines to help them with investments and purchases.
  • Capital Formation: To promote economic growth, banks gather deposits and channel them toward profitable investments.
  • International Trade: Banks support international trade by providing services like foreign exchange and letters of credit.
  • Financial Services: They offer financial goods, wealth management, and investment advice.
  • Economic Stability: The general stability of the economy is aided by a sound financial system.
  • Currency management: To control inflation and guarantee stability, central banks that are affiliated with banks govern currencies.
  • Banks act as financial intermediaries by bringing together savers and borrowers and directing money toward investments and economic expansion.
  • Banks offer payment systems for quick and safe transactions, resulting in efficient payments.
  • Banks provide resources and services for risk management of financial hazards.
  • Banks have an impact on interest rates, which affect borrowing costs and economic activity.
  • Banks are involved in the issue of government debt to finance public goods and services.

Roles of banks in Nepal

  • Banks serve as middlemen in the lending process between depositors (savers) and borrowers. They amass deposits from private citizens and commercial entities and lend these monies to borrowers for a variety of uses, hence promoting economic activity.
  • Banks offer a secure location for people and companies to deposit their money, lowering the danger of carrying cash. This security promotes financial stability and saving.
  • Banks provide effective payment and settlement mechanisms, such as checks, credit/debit card services, and electronic fund transfers. Both organizations and people can use these technologies to make transactions simpler.
  • Banks provide credit to people, companies, and farms through loans and credit lines. This ease of obtaining finance promotes investments, employment development, and economic expansion.
  • Banks are essential to capital development because they gather funds and direct them toward profitable ventures. Infrastructure, industries, and enterprises all benefit from this.
  • Due to the open economy of Nepal, banks offer foreign exchange services for remittances and international commerce, adding to the nation’s foreign exchange reserves.

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FAQs – list of banks in Nepal

How many banks are there in Nepal?

Altogether there are 20 commercial banks,17 development banks, 17 finance companies, and 57 microfinance in Nepal.

Which are the top 5 banks in Nepal?

There are many factors to determine the top bank. According to the paid-up capital, the top five banks are: Global IME Bank Ltd, Nepal Investment Mega Bank Ltd, Nabil Bank Limited, Kumari Bank Ltd, and Prabhu Bank Ltd

What are the 3 government banks in Nepal?

The three government banks in Nepal are: Nepal Rastra Bank, Rastriya Banijya Bank, and Agricultural Development Bank

What are BFIs in Nepal?

Conclusion

The list of banks in Nepal has developed greatly over the years, now providing a wide range of financial services to meet the various demands of its people and enterprises. Understanding Nepal’s banking system, its role, and its importance will enable you to make wise financial decisions and take full advantage of the country’s vibrant banking scene, whether you are a native or a tourist. 

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