Types of Banks in Nepal

12:18 AM Yogesh Baniya

According to function and nature of bank, in Nepal banks are classified in following types:-
1)Central Bank
2)Commercial Bank (Class A)
3)Development Bank (Class B)
4)Finance Companies (Class C)
5)Micro Credit Development Bank (Class D)

1)Central Bank:- The Nepal Rastra Bank (NRB) was established in Baisakh 14, 2013
B.S. (April 26, 1956 A.D.) as a central bank of Nepal to supervises the banks and
financial institutions (licensed by the NRB) in Nepal and guides monetary policy.Nepal
Rastra Bank was established in 1956 under the Nepal Rastra Bank Act, 1955, to
discharge the central banking responsibilities including guiding the development of the
embryonic domestic financial sector. Since inception, there has been a significant
growth in both the number and the activities of the domestic financial institutions.

2)Commercial Bank (Class A):-A Commercial bank is a type of Bank / Financial

Institution that provides services such as accepting deposits, making business loans,
and offering basic investment products. Commercial bank can also refer to a bank, or a
division of a large bank, which more specifically deals with deposit and loan services
provided to corporations or large/middle-sized business – as opposed to individual
members of the public/small business – Retail banking, or Merchant banks. At present
there are 29 Commercial Bank in Nepal.

3)Development Bank (Class B):-The bank which is established for the development of
different sectors like industrial, agricultural, infrastructural etc by imitating the modern
system and methodology through financial, technical and administrative assistance is
known as development bank. Development banks in Nepal are playing vital roles for the
development of economy status of Nepal. Nepal has many nationalized and private
banking. There are 70 development banks in Nepal.

4)Finance Companies (Class C):-The history of financial institutions is not very old.
When banking sector started carrying out current activities of finance company, large
number of finance companies was established and they expanded at a rapid pace in the
developed countries, UK and USA in 1960. In the context of Nepal, there were few
insurance companies and Karmachari Sanchaya Kosh working as non-banking financial
institution before enactment of Finance Company Act, 2042. Need of Finance Company
Act was felt because unauthorized sector was collecting savings from the common
public in the name of Upahar and Dhukuti programmes. People showed great interest
and enthusiasm in these programmes but they were cheated by most of the organizers
of these programmes. Considering peoples’ interest in such programmes, benefit of
mobilizing such savings in productive sector, banking sectors’ inability to carry out
capital market activities and to meet consumers’ need for credit, government felt the
need of finance companies and introduced Finance Company Act, 2042. However, no
finance company set up till 2049 because the act came into being only in 2049 with
some amendments.At Present there are 44 Finance companies in Nepal.

5)Micro Credit Development Bank (Class D):- Nepal is a land locked developing
country. Many people (38%) of Nepal are under poverty region.Most of the poor people
lives in rural ares and have little opportunity. Micro finance (Micro Credit Development
Bank) could help poor people who do not have any collateral, but a willingness to work
and a desire to do some business activities from which He/She will acquire employment
as well as income. At present there are 41 Micro Credit Development Bank in Nepal.

Following are list of bank and finance institution according to their class.

Commercial Banks (Class A)

1. Nepal Bank Limited
2. Rastriya Banijya Bank Limited
3. Agriculture Development Bank Limited
4. Nabil Bank Limited
5. Nepal Investment Bank Limited
6. Standard Chartered Bank Nepal Limited
7. Himalayan Bank Limited
8. Nepal SBI Bank Limited
9. Nepal Bangladesh Bank Limited
10. Everest Bank Limited
11. Bank of Kathmandu Limited (in merger process with Lumbini Bank)
12. Nepal Credit and Commerce Bank Limited (in merger process with Kumari Bank)
13. Kumari Bank Limited (in merger process with NCC Bank)
14. Laxmi Bank Limited
15. Siddhartha Bank Limited
16. Global IME Bank Limited
17. Citizens Bank International Limited
 18. Prime Commercial Bank Limited
19. Sunrise Bank Limited
20. NMB Bank Nepal Limited
21. Lumbini Bank Limited (in merger process with BOK)
22. NIC Asia Bank Limited
23. Machhapuchchhre Bank Limited
24. Mega Bank Nepal Limited
25. Civil Bank Limited (in merger process with Int'l Leasing & Fin, Co. Ltd.)
26. Century Bank Limited
27. Sanima Bank Limited
28. Janata Bank Nepal Limited
29. Prabhu Bank Limited

Development Banks (Class B)

1. Nepal Industrial Development Corporation
2. Malika Bikash Bank Limited
3. Siddhartha Development Bank Limited
4. Yeti Development Bank Limited
5. United Bikash Bank Limited
6. Narayani Development Bank Limited
7. Sahayogi Bikas Bank Limited
8. Karnali Bikash Bank Limited
9. Tribeni Development Bank Limited
10. Supreme Development Bank Limited (in merger process with NCC Bank)
11. Shubhechchha Bikas Bank Limited
12. Sangrila Development Bank Limited
13. Gandaki Bikas Bank Limited
14. Infrastructure Development Bank Limited (in merger process with NCC Bank)
15. Business Development Bank Limited (In merger process with Siddhartha Bank)
16. Biratlaxmi Bikas Bank Limited
17. Excel Development Bank Limited
18. Western Development Bank Limited
19. Society Development Bank Limited (in merger process with Vibor Bikash Bank Limited)
20. Arniko Development Bank Limited
21. Deva Development Bank Limited
22. Miteri Development Bank Limited
23. Tinau Bikas Bank Limited
24. Muktinath Bikas Bank Limited
25. Sewa Bikas Bank Limited
26. Kankai Bikas Bank Limited
27. Ace Development Bank Limited
28. Mahakali Bikas Bank Limited
29. Bhargab Bikas Bank Limited
30. Vibor Bikas Bank Limited
31. Country Development Bank Limited
32. Alpine Development Bank Limited
33. Garima Bikas Bank Limited
34. Kasthamandap Development Bank Limited
35. Professional Diyalo Bikas Bank Limited
36. Kamana Bikas Bank Limited
37. Corporate Development Bank Limited
38. Om Development Bank Limited
39. Fewa Bikas Bank Limited
40. Kabeli Bikas Bank Limited
41. Purnima Bikas Bank Limited
42. Jyoti Bikas Bank Limited (in merger process with Jhimruk and Hamro)
43. Shine Resunga Development Bank Limited
44. Bagmati Development Bank Limited
45. Hamro Bikas Bank Limited (in merger process with Jyoti and Jhimruk)
46. Kakre Bihar Bikas Bank Limited
47. Pacific Development Bank Limited
48. International Development Bank Limited (in merger process with NCC Bank)
49. Kanchan Development Bank Limited
50. Matribhumi Bikas Bank Limited
51. Innovative Development Bank Limited
52. Jhimruk Bikas Bank Limited (in merger process with Jyoti and Hamro)
53. Raptibheri Bikas Bank Limited
54. Gaumukhi Bikas Bank Limited
55. Tourism Development Bank Limited
56. Mission Development Bank Limited
57. Mount Makalu Development Bank Limited
 58. Sindhu Bikas Bank Limited
59. Sahara Development Bank Limited
60. Nepal Community Development Bank Limited
61. Cosmos Development Bank Limited
62. Manasalu Development Bank Limited
63. Kalinchowk Development Bank Limited
64. Kailash Development Bank Limited
65. Salapa Development Bank Limited
66. Saptakoshi Development Bank Limited
67. Sajha Development Bank Limited
68. Apex Development Bank Limited (in merger process with NCC Bank)
69. Green Development Bank Limited
70. Reliable Development Bank Limited

Finance Companies (Class C)

1. Nepal Finance Limited
2. NIDC Capital Markets Limited
3. Narayani National Finance Limited (in merger process with Sunrise bank)
4. Nepal Share Markets and Finance Limited
5. Gurkhas Finance Limited
6. Himalaya Finance Limited
7. Union Finance Limited
8. Paschhimanchal Finance Co. Limited
9. Samjhana Finance Co. Limited
10. Goodwill Finance Limited
11. Siddhartha Finance Limited
12. Shree Investment & Finance Co. Ltd.
13. Lumbini Finance & Leasing Co. Limited
14. International Leasing & Finance Co. Limited (in merger process with Civil Bank Limited)
15. Mahalaxmi Finance Limited
16. Lalitpur Finance Co. Limited
17. United Finance Co. Limited
18. General Finance Limited
19. Progressive Finance Limited
20. Janaki Finance Co. Limited
 21. Pokhara Finance Limited
22. Central Finance Limited
23. Premier Finance Co. Limited
24. Arun Finance Limited
25. Multipurpose Finance Co. Ltd
26. Synergy Finance Limited
27. Shrijana Finance Limited
28. World Merchant Banking & Finance Limited
29. Capital Merchant Banking & Finance Co. Limited
30. Crystal Finance Limited
31. Guheshworil Merchant Banking & Finance Limited
32. Everest Finance Limited
33. ICFC Finance Limited
34. Sagarmatha Finance Ltd
35. Kuber Merchant Finance Limited
36. Seti Finance Limited
37. Hama Merchant & Finance Limited
38. Nameste Bitiya Sanstha Limited
39. Kaski Finance Limited
40. Unique Financial Institution Limited
41. Manjushree Financial Institution Limited
42. Jebil`s Finance Limited
43. Reliance Finance Limited
44. Bhaktapur Finance Limited

Micro Credit Development Banks (Class D)

1. Nepal Grameen Bikas Bank Limited
2. Nirdhan Utthan Bank Limited
3. Rural Microfinance Development Centre Limited
4. Deprosc Microfinance Development Bank Limited
5. Chhimeki Microfinance Development Bank Limited
6. Shawalamban Laghu Bitta Bikas Bank Limited
7. Sana Kisan Vikas Bank Limited
8. Nerude Laghu Bitta Bikas Bank Limited
9. Naya Nepal Laghu Bitta Bikas Bank Limited
10. Mithila Laghu Bitta Bikas Bank Ltd
11. Summit Microfinance Development Bank Ltd
12. Sworojagar Laghu Bitta Bikas Bank Ltd
13. First Microfinance Development Bank Ltd
14. Nagbeli Microfinance Development Bank Ltd
15. Kalika Microcredit Development Bank Limited
16. Mirmire Microfinance Development Bank Limited
17. Janautthan Samudayik Microfinance Dev. Bank Limited
18. Reliable Microfinance Limited
19. ILFCO Microfinance Bittiya Sanstha Ltd
20. Womi Microfinance Bittiya Sanstha Ltd
21. Laxmi Microfinance Bittiya Sanstha Ltd
22. Mahila Sahayatra Microfinance Bittiya Sanstha Ltd
23. Vijaya Laghubitta Bittiya Sanstha Ltd
24. Kisan Microfinance Bittiya Sanstha Ltd
25. Clean Village Microfinance Bittiya Sanstha Ltd
26. FORWARD Community Microfinance Bittiya Sanstha
27. Reliable Microfinance Bittiya Sanstha Ltd
28. Mahuli Samudyik Laghubitta Bittiya Sanstha Ltd
29. Suryodaya Laghubitta Bitiya Sanstha Ltd. Microfinance Bittiya Sanatha Ltd
30. Samata Microfinance Bittiya Sanatha Ltd
31. RSDC Laghubitta Bitiya Sanstha Ltd
32. Samudayik Laghubitta Bitiya Sanstha Ltd
33. Srijana Community Development Centre and Laghubitta Sewa
34. National Microfinance Bittiya Sanstha Ltd
35. Nepal Sewa Laghubitta Bitiya Sanstha Ltd
36. Unnati Microfinance Bitiya Sanstha Ltd
37. Swadesi Lagubitta Bittiya Sanstha Ltd
38. NADEP Laghubitta Bittiya Sanstha Ltd
39. Support Microfinance Bittiya Sanstha Ltd
40. Arambha Microfinance Bittiya Sanstha
41. Janasewi Laghubitta Bittiya Sanstha Ltd