Commercial Bank - Insurance News Nepal

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.

Class ‘A’ Banks: Commercial Bank
Class ‘B’ Banks: Development Bank
Class ‘C’ Banks: Finance companies
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 Bank	1968	Ramshahpath, Kathmandu	रु 18.88 Arab
Nepal Bank	1937	Dharmapath, Kathmandu	रु 14.69 Arab
Rastriya Banijya Bank	1966	Singhadurbarplaza, Kathmandu	रु 14.64 Arab
Citizens Bank International	2007	Narayanhitipath, Kathmandu	रु 14.20 Arab
Everest Bank	1994	Lazimpat, Kathmandu	रु 10.70 Arab
Global IME Bank	2023	Kamaladi, Kathmandu	रु 35.77 Arab
Himalayan Bank	1993	Kamaladi, Kathmandu	रु 21.66 Arab
Kumari Bank	2023	Durbarmarg, Kathmandu	रु 26.23 Arab
Laxmi Sunrise Bank	2023	Hattisar, Kathmandu	रु 21.67 Arab
Machhapuchhre Bank	2012	Lazimpat, Kathmandu	रु 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.N	Bank Name	Headquarters	Paid-up Capital (in NPR)
1	Muktinath Bikash Bank	Kamaladi, Kathmandu	रु 6.43 Arab
2	Garima Bikas Bank	Lazimpat, Kathmandu	रु 5.19 Arab
3	Mahalaxmi Development Bank	Durbar Marg, Kathmandu	रु 4.17 Arab
4	Jyoti Bikas Bank	Kamaladi, Kathmandu	रु 4.40 Arab
5	Shine Resunga Development Bank	Butwal, Lumbini	रु 4.28 Arab
6	Lumbini Bikas Bank	Dillibazaar, Kathmandu	रु 3.38 Arab
7	Sangrila Development Bank	Baluwatar, Kathmandu	रु 3.01 Arab
8	Kamana Sewa Bikas Bank	Gyaneshwor, Kathmandu	रु 3.14 Arab
9	Saptakoshi Development Bank	Dhankuta, Koshi	रु 0.83 Arab
10	Excel Development Bank	Birtamod, Koshi	रु 1.25 Arab
11	Miteri Development Bank	Dharan, Koshi	रु 1.02 Arab
12	Narayani Development Bank	Ratnanagar, Bagmati	रु 0.26 Arab
13	Salapa Bikash Bank	Diktel, Koshi	रु 0.35 Arab
14	Sindhu Bikas Bank	Barhabise, Bagmati	रु 0.56 Arab
15	Green Development Bank	Pokhara, Gandaki	रु 0.52 Arab
16	Corporate Development Bank	Birgunj, Madhesh	रु 0.50 Arab
17	Karnali Development Bank	Nepalgunj, Lumbini	रु 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.N	Microfinance Company	Operation Date (A.D.)	Head Office
1	Nirdhan Utthan Laghubitta Bittiya Sanstha Ltd.	7/17/1999	Naxal, Kathmandu
3	Deprosc Laghubitta Bittiya Sanstha Ltd.	7/3/2001	Bharatpur, Chitwan
4	Chhimek Laghubitta Bittiya Sanstha Ltd.	12/10/2001	Old Baneshwor, Kathmandu
5	Swabalamban Laghubitta Bittiya Sanstha Ltd.	2/22/2002	Kamal Pokhari, Kathmandu
6	Nerude Laghubitta Bittiya Sanstha Ltd.	6/15/2007	Biratnagar, Morang
7	Mithila Laghubitta Bittiya Sanstha Ltd.	4/29/2009	Dhalkebar, Dhanusha
8	Sworojagar Laghubitta Bittiya Sanstha Ltd.	12/16/2009	Banepa, Kavre
9	Kalika Laghubitta Bittiya Sanstha Ltd.	2020/01/08*	Pokhara, Kaski
10	Mirmire Laghubitta Bittiya Sanstha Ltd.	9/23/2010	Banepa, Kavre
11	Janautthan Samudayik Laghubitta Bittiya Sanstha Ltd.	11/9/2010	Butwal, Rupandehi
12	Suryodaya Womi Laghubitta Bittiya Sanstha Ltd.	2022/04/02*	Banepa, Kavre
13	Laxmi Lighubitta Bittiya Sanstha Ltd.	6/4/2012	Maharajgunj, Kathmandu
14	Vijaya Laghubitta Bittiya Sanstha Ltd.	3/28/2013	Gaidakot, Nawalparasi
15	NMB Laghubitta Bittiya Sanstha Ltd.	3/31/2013	Pokhara-Hemja, Kaski
16	Forward Microfinance Bittiya Sanstha Ltd.	5/17/2013	Duhabi Bhaluwa, Sunsari
17	Global IME Laghubitta Bittiya Sanstha Ltd.	5/19/2013	Pokhara, Kaski
18	Mahuli Laghubitta Bittiya Sanstha Ltd.	2020/11/23*	Bakdhuwa, Saptari
19	Meromicrofinance Laghubitta Bittiya Sanatha Ltd.	7/18/2013	Battar, Nuwakot
20	Samata Gharelu Laghubitta Bittiya Sanatha Ltd.	2021-04-15*	Banepa, Kavrepalanchowk
21	Samudayik Laghubitta Bitiya Sanstha Ltd.	4/13/2014	Banepa, Kavre
22	National Microfinance Laghubitta Bittiya Sanstha Ltd.	7/2/2014	Nilkantha, Dhading
23	Grameen Bikas Laghubitta Bittiya Sanstha Ltd.	2014/8/15*	Butwal, Rupandehi
24	WEAN Nepal Laghubitta Bittiya Sanstha Limited	2021-11-01*	Phataksila, Sindhupalchok
25	Unnati Sahakarya Laghubitta Bittiya Sanstha	2020/07/10*	Siddarthanagar, Rupandehi
26	NADEP Laghubitta Bittiya Sanstha Ltd.	5/15/2015	Gajuri, Dhading
27	Support Microfinance Bittiya Sanstha Ltd.	7/12/2015	Hasposa, Itahari
28	Aarambha Chautari Laghubitta Bittiya Sanstha	1/3/2016	Butwal, Rupandehi
29	Asha Lagubitta Bittiya Sastha Ltd.	8/29/2016	Madanpur Nuwakot
30	Gurans Laghubitta Bittiya Sastha Ltd.	11/16/2016	Dhankutabazaar, Dhankuta
31	Ganapati Microfinance Bittiya Sastha Ltd.	12/9/2016	Shuklagandaki, Tanahu
32	Infinity Laghubitta Bittiya Sanstha Ltd	1/20/2017	Gaidakot, Nawalparasi
33	Swabhiman Laghubitta Bittiya Sanstha Ltd.	5/22/2017	Tilottama, Rupandehi
34	Sabaiko Laghubitta Bittiya Sanstha Ltd.	7/14/2017	Bandipur, Tanahu
35	Sadhana Laghubitta Bittiya Sanstha Ltd.	10/30/2017	Gorkha, Gorkha
36	NIC Asia Laghubitta Bittiya Sanstha Ltd.	2021/03/21*	Banepa, Kavrepalanchowk
37	Manakamana Smart Laghubitta Bittiya Sanstha Ltd.	2020/07/26*	Siddarthanagar, Ruphandehi
38	Samaj Laghubitta Bittiya Sanstha Ltd.	5/15/2018	Malangawa, Sarlahi
39	Mahila Laghubitta Bittiya Sanstha Ltd.	10/18/2018	Banepa, Sanga, Kavrepalanchok
40	Manushi Laghubitta Bittiya Sanstha Ltd.	11/17/2018	Banepa, Bhaisepati, Kavrepalanchok
41	Unique Nepal Laghubitta Bittiya Sanstha Ltd.	2022/01/14*	Kohalpur, Banke
42	Jalpa Laghubitta Bittiya Sanstha Limited	2020-12-01*	Butwal, Rupandehi
43	Upakar Laghubitta Bittiya Sanstha Limited	3/27/2019	Kohalpur, Banke
44	Dhaulagiri Laghubitta Bittiya Sanstha Limited	2/19/2019	Baglung -2, Baglung
45	CYC Nepal Laghubitta Bittiya Sanstha Limited	3/15/2019	Pokhara, Kaski
46	NESDO Samriddha Laghubitta Bittiya Sanstha Limited	3/5/2019	Kushma, Parbat
47	Swastik Laghubitta Bittiya Sanstha Limited	3/26/2019	Lahan, Siraha
48	Shrijanshil Laghubitta Bittiya Sanstha Limited	3/15/2019	Golbazar, Siraha
49	Kisan Laghubitta Bittiya Sanstha Limited	2020/07/13*	Dhanagadhi, Kailali
50	Jeevan Bikash Laghubitta Bittiya Sanstha Limited	2020/09/07*	Katahari, Morang
51	BPW Laghubitta Bittiya Sanstha Limited	4/15/2019	Banepa, Kavrepalanchok
52	Aatmanirbhar Laghubitta Bittiya Sanstha Limited	4/15/2019	Ghorahi, Dang
53	Super Laghubitta Bittiya Sanstha Limited	1/15/2020	Tulshipur, Dang
54	Aviyan Laghubitta Bittiya Sanstha Limited	12/17/2019	Panauti, Kavre
55	Himalayan laghubitta	01/12/2067	Chabahil, Kathmandu, Nepal

List of wholesale microfinance companies

S.N	Microfinance Company	Operation Date (A.D.)	Head Office
1	Sana Kisan Bikas Laghubitta Bittiya Sanstha Ltd.	3/11/2002	Babarmahal, Kathmandu
2	First Microfinance Laghubitta Bittiya Sanstha Ltd.	12/28/2009	Gyaneshwor, Kathmandu
3	RSDC Laghubitta Bitiya Sanstha Ltd	9/11/2013	Butwal, 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.

Share refers to the percentage of the equity in a company or financial assets. Shares which are also known as units of stocks and commonly phrased as stocks are the part of large portions of units divided among the investors or buyers. Here we have summed up the ideas of the share market and the Best Shares to Buy in Nepal.

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What is a share market?

Share market refers to the place where buyers and sellers deal together for trading the stocks. The buying and selling of any stock represent the ownership claims of the business. The stock market is considered a component of the free market economy.

Commonly, the share market is the place where the companies are allowed to raise the money by presenting stock shares and corporate bonds which also provides the investors equal possibility to participate in the financial achievements of the company. The value of a single common share is 100 NPR.

Primary Share market

The primary share market is the place where securities are created. It enables companies, governments, and other institutions to raise additional funds through the sale of debt and equity-related securities. These companies issue the securities to the public which is known as IPO.

The primary market securities may include notes, bills, government bonds, corporate bonds, and stock of companies.

Secondary Share Market

The secondary market is the trading ground where those secured shares that are issued in the primary share market are traded. Here the investors purchase securities and assets from other investors. Here, we trade the stocks that have already been issued by companies and corporations.

While we deal with the buying and selling of stocks and shares we must learn that the only stock exchange of Nepal is NEPSE.

NEPSE

Nepal Stock Exchange (NEPSE) is the only stock exchange for the secondary market in Nepal. It provides a platform for investors to buy and sell shares of publicly traded companies in various sectors of Nepal. You can trade on NEPSE after you sign up for a broker account.

It was founded in January 1994. The owner of the Nepal Stock Exchange is the government itself.

Top Shares to Buy in Nepal: Blue Chip Companies

Blue chip companies are those companies that have a great track of making money. Blue-chip companies are more reliable and safer to invest in. We have listed some top Shares to Buy in Nepal.

Commercial Banks

a) Nabil Bank Limited

Symbol	NABIL
P/E Ratio	21.32
Earnings Per Share (EPS)	27.82
Paid-up Value	100.00
Total Pidup value	27,056,997,000.00
Listed Shares	270,569,970.00

b) GBIME Global IME Bank Limited

Symbol	GBIME
P/E Ratio	10.04
Earnings Per Share (EPS)	20.28
Paid up Value	100.00
Total Pidup value	35,771,060,000.00
Listed Shares	357,710,600.00

3) Nepal Investment Mega Bank Limited

Symbol	NIMB
P/E Ratio	13.83
Earnings Per Share (EPS)	12.59 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	34,128,595,000.00
Listed Shares	341,285,950.00

Development Banks

a) Muktinath Bikas Bank Ltd.

Symbol	MNBBL
P/E Ratio	18.30
Earnings Per Share (EPS)	21.24 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	6,420,900,273.00
Listed Shares	64,209,002.73

b) Garima Bikas Bank Limited

Symbol	GBBL
P/E Ratio	15.99
Earnings Per Share (EPS)	23.47 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	5,187,687,057.00
Listed Shares	51,876,870.57

Life insurance

a) Nepal Life Insurance Co. Ltd.

Symbol	NLIC
P/E Ratio	0.00
Earnings Per Share (EPS)	0.00 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	8,207,966,550.00
Listed Shares	82,079,665.50

b) Life Insurance Co. Nepal

Symbol	LICN
P/E Ratio	0.00
Earnings Per Share (EPS)	0.00 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,653,200,000.00
Listed Shares	26,532,000.00

Non life insurance

a) Shikhar Insurance Co. Ltd.

Symbol	SICL
P/E Ratio	49.57
Earnings Per Share (EPS)	15.19 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,654,947,200.00
Listed Shares	26,549,472.00

b) Himalayan Everest Insurance Limited

Symbol	HEI
P/E Ratio	31.94
Earnings Per Share (EPS)	17.41 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,301,535,000.00
Listed Shares	23,015,350.00

Microfinance

a) Chhimek Laghubitta Bikas Bank Limited

Symbol	CBBL
P/E Ratio	25.53
Earnings Per Share (EPS)	37.45 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,835,402,000.00
Listed Shares	28,354,020.00

b) Nirdhan Utthan Laghubitta Bittiya Sanstha Limited

Symbol	NUBL
P/E Ratio	14,552.50
Earnings Per Share (EPS)	0.04 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,612,079,750.00
Listed Shares	26,120,797.50

Hydropower

a) Chilime Hydropower Company Limited

Symbol	CHCL
P/E Ratio	50.17
Earnings Per Share (EPS)	9.57 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	7,258,179,280.00
Listed Shares	72,581,792.80

b) Butwal Power Company Limited

Symbol	BPCL
P/E Ratio	39.02
Earnings Per Share (EPS)	7.84 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	3,409,065,000.00
Listed Shares	34,090,650.00

Other important shares

Nepal Telecom (NTC)

Symbol	NTC
P/E Ratio	19.76
Earnings Per Share (EPS)	43.36 (FY:079-080, Q:4)
% Dividend	40.00 (FY:078-079)
Paid-up Value	100.00
Total Pidup value	18,000,000,000.00
Listed Shares	180,000,000.00

Himalayan Distillery Limited

Symbol	HDL
P/E Ratio	71.81
Earnings Per Share (EPS)	27.17 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,429,566,650.00
Listed Shares	24,295,666.50

Unilever Nepal Limited

Symbol	UNL
P/E Ratio	17.61
Earnings Per Share (EPS)	1,987.08 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	92,100,000.00
Listed Shares	921,000.00

Chimmek Laghubitta Bittiya Sanstha Limited

Symbol	CLBSL
P/E Ratio	25.53
Earnings Per Share (EPS)	37.45 (FY:079-080, Q:4)
Paid-up Value	100.00
Total Pidup value	2,835,402,000.00
Listed Shares	28,354,020.00

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FAQs

Which is the best stock to buy in Nepal?

There best stock to buy in Nepal is NABIL since it provides an average dividend of more than 43% in the last 10 years.

What is IPO?

IPO (Initial Public Offering) is the process where companies offer their shares to the investors in the primary market.

What is the Share market?

The share market is the place where companies are allowed to raise money by presenting stock shares and corporate bonds which also provides the investors equal possibility to participate in the financial achievements of the company.

Is it better to invest in bank stocks?

Bank stock can be worth a long-term investment. The average dividend returns of bank stocks are comparatively higher than other stocks' average dividends.

Who holds the most shares in Nepal?

The government of Nepal holds most of the shares in Nepal. It has 58.66% of ownership of the stocks and shares in the share market.

How much does it cost to invest in a share?

There is no minimum or maximum amount required to invest in a share. You just need to have the amount that is enough to buy the quantity or unit that is fixed by the companies.

Conclusion:

Hence, entering the stock market with little understanding can be risky. Make sure you’ve got an idea of the common terms used in share markets to develop a place in the share market world. The stocks are intended for long-term investment. you must understand the fundamentals of the investment to gain success in the share market. However, we have made it easier for you by listing the best shares to buy in Nepal.

Input	Value
Loan Amount (P): NPR
Annual Interest Rate (%):
Loan Tenure (N in months):