Commercial Banks of Nepal | Everything You Need to Know
NRB has classified financial institutions into four classes where commercial banks are classified as class “A” financial institutions in Nepal. They operate under the guidelines of Nepal Rastra Bank, the governing body of all financial institutions. List of classified financial institutions are as follows:
- “A” Class Commercial Banks
- “B” Class Development Banks
- “C” Class Finance Companies
- “D” Class Micro-finance Companies
There are currently 20 commercial banks in Nepal as on July 2025. Nepal Bank is the first commercial bank of Nepal established on 1937. Global IME Bank is the bank with largest market capitalization in banking industry of Nepal.
Banks deal in monetary transactions at national level. Main functions of these banks is to accept deposit & grant loans from and to its customers. Other functions of commercial bank are service of foreign exchange, letter of credit, Internet banking and many more.
Functions of Commercial Banks in Nepal
Credit Creation is the most important function of commercial bank. Along with accepting deposits, granting loans, issuing letter of credit and providing service of foreign exchange, commercial banks have several other functions which we have listed below.
A. Primary functions of Commercial Bank
1. Accepting Deposits -
The bank accepts deposits from customers in the form of saving, current and fixed deposits. And provides certain interest rate as per the policy of banks.
2. Granting Loans -
Creating credit is the main role of banks. These banks grants loans from the amount collected as deposits to customers at interest rates higher than they provide. In such way bank earns profit and it is the primary source of income for banks.
B. Secondary Function of Commercial Banks
3. Working as agency function -
Commercial banks works as agents of their customers by helping them in collecting and paying cheques, insurance premiums, utility bills, rent, and other charges. Also, they help in collection of dividend and purchase and sale of foreign exchange.
4. Overdraft facilities -
It is a facility provided by bank to its customers where users can withdraw up to certain amount of money even when they don’t have money in bank. Bank charges certain fees for this service.
5. Issuing Letter of Credit -
Letter of credit is very useful in foreign trade which is issued by banks to prove the credit worthiness of customers. It is a document sent from a bank or financial institute that guarantees a seller will receive a buyer’s payment on time.
6. Service of foreign exchange -
It is a facility or service provided by banks to sale or purchase foreign currency held by customers with prior approval from central bank of Nepal.
7. Tax Consultant -
Commercial Banks act as a tax consultant by providing the instruction, advice, process, and laws relating to tax and makes the clients more clear about the policies.
8. Locker facilities -
Customers are provided with locker facilities at banks to keep their valuables or documents safely. The banks charge certain service charges and fees for providing this service.
9. Travelers Cheque -
Customers are provided with locker facilities at banks to keep their valuables or documents safely. The banks charge certain service charges and fees for providing this service.
10. Remittance -
This is the major function of bank, the process of sending and receiving money from different place, national or international on the request of customer. It is done by the means of bank draft. T.T., mail transfer, wire transfer and several others.
List of Commercial Banks of Nepal (Class A)
| Bank Name | Symbol | Listed Shares |
|---|---|---|
| Agricultural Development Bank Limited | ADBL | 138552244.00 |
| Citizens Bank International Limited | CBL | 147690131.00 |
| Everest Bank Limited | EBL | 129446944.00 |
| Global IME Bank Limited | GBIME | 381158527.00 |
| Himalayan Bank Limited | HBL | 216566158.00 |
| Kumari Bank Limited | KBL | 262258613.00 |
| Laxmi Sunrise Bank Limited | LSL | 243465123.00 |
| Machhapuchchhre Bank Limited | MBL | 116213573.00 |
| Nabil Bank Limited | NABIL | 270569984.00 |
| Nepal Bank Limited | NBL | 146940230.00 |
| Nepal Investment Mega Bank Limited | NIMB | 341285949.00 |
| Nepal SBI Bank Limited | SBI | 108991581.00 |
| NIC Asia Bank Limited | NICA | 149175670.00 |
| NMB Bank Limited | NMB | 183667060.00 |
| Prabhu Bank Limited | PRVU | 235424899.00 |
| Prime Commercial Bank Limited | PCBL | 194025759.00 |
| Sanima Bank Limited | SANIMA | 135815256.00 |
| Siddhartha Bank Limited | SBL | 140899802.00 |
| Standard Chartered Bank Nepal Limited | SCB | 100423684.00 |
Here, we have mentioned some details about few commercial banks operating in Nepal.
Nepal Bank Limited (NBL)
Nepal Bank Limited (NBL) was established as the first bank of Nepal on 1994 B.S with an authorized capital of Rs.10 million, issued capital of Rs.2.5 million and paid up capital of Rs.0.842 million. The company has an authorized capital of Rs 15 Arab at present and is listed in Nepal Stock Exchange (NEPSE) as NBL.
You May Like to Read: Dividend History of Nepal Bank Limited (NBL)
Nabil Bank Limited (NABIL)
Nabil Bank Limited (NABIL) was established on 1984 operates with 230 branch offices, 254 ATMs, numerous POS terminals, remittance agents spread across the nation. The Bank also has over 170 international correspondent banking relationships. The Bank has always stayed true to its three strong pillars: Service Excellence, Technology, and Product innovation.
You May Like to Read: Dividend History of Nabil Bank Limited
Rastriya Banijya Bank Limited
Rastriya Banijya Bank Limited was established on 23 January 1966 and was fully owned by Government of Nepal. At present, the Bank operates as “A” class financial institution licensed by Nepal Rastra Bank and carries out commercial banking activities as per the provisions of the “Bank and Financial institutions Act 2073,” (2017). The Bank has been able to imprint its presence in national economy through efficient allocation of resources in all sectors of economy.
Rastriya Banijya Bank is the only commercial bank which is not listed in Nepal Stock Exchange Limited (NEPSE).
NIC ASIA Bank Limited (NICA)
NIC ASIA Bank (NICA) is one of the leading commercial bank of Nepal formed after merger between NIC Bank and Bank of Asia in 2013. The bank has 359 branches all over the country and is one of the largest bank in the country. NICA currently has a paid-up capital of Rs 11.56 Arab.
You May Like to Read: Dividend History of NIC ASIA Bank Limited (NICA)
NMB Bank Limited (NMB)
NMB Bank Limited (NMB) founded on 2008 is a “A” class financial institution licensed by Nepal Rastra Bank. It is one of the leading commercial bank of Nepal having joint Venture Agreement with Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO).
You May Like to Read: Dividend History of NMB Bank Limited (NMB)
SANIMA Bank Limited (SANIMA)
Sanima Bank Limited (SANIMA) was established on 2004 as a national level development bank. Since 2012 the bank has been operating as “A” class commercial bank licensed by Nepal Rastra Bank. The company has a paid-up capital of Rs 11.32 Arab and is operating with 99 branches all over Nepal.
You May Like to Read: Dividend History of Sanima Bank Limited (SANIMA)
Global IME Bank Limited (GBIME)
Global IME Bank Limited (GBIME) was established in 2007 as an ‘A’ class commercial bank in Nepal which provided entire commercial banking services. The Bank emerged after successful merger of Global Bank Ltd, IME Financial Institution and and Lord Buddha Finance Ltd. Since then GBIME have already made merger with several banks and financial institutions. Merger of GBIME with Bank of Kathmandu is the recent one.
You May Like to Read : Dividend History of Global IME Bank Limited (GBIME)
Prime Commercial Bank Limited (PCBL)
Prime Commercial Bank Limited (PCBL) was established in in September 2007 as the 21st commercial bank of Nepal. It has been established by prominent business personnel and professionals from diversified areas with a prime objective of providing ‘Banking Services to Everyone’ in the country. Counted among the top ten commercial banks its shares are actively traded in the Nepal Stock Exchange (NEPSE).
You May Like To Read : Dividend History of Prime Commercial Bank Limited (PCBL)
FAQs: Commercial Banks in Nepal
As of 2025, there are 20 commercial banks operating in Nepal, licensed by Nepal Rastra Bank (NRB), the central bank.
Yes. Nepal Rastra Bank regulates all commercial banks. Additionally, the Deposit and Credit Guarantee Fund (DCGF) provides partial insurance for deposits up to a certain amount.
- Commercial banks serve a wide range of banking needs including international trade and corporate banking.
- Development banks focus more on rural development, small businesses, and agricultural financing.
Final Thoughts
Commercial banks play a crucial role in shaping Nepal’s economic landscape. Regulated by Nepal Rastra Bank, these institutions are the backbone of the country’s financial system, offering a wide range of services such as savings and loan facilities, digital banking, and remittance support. Their presence ensures financial inclusion, supports business growth, and contributes to national development. With several banks listed on the Nepal Stock Exchange, they not only serve the general public but also create value for investors. As Nepal continues to modernize its financial sector, commercial banks remain central to fostering economic stability and progress.
Read More
