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Saturday, June 4, 2016

Types of Banks in Nepal

  12:18 AM    


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
ref : https://en.wikipedia.org/wiki/List_of_banks_in_Nepal

  146 Comments

Wednesday, June 1, 2016

Banking System in Nepal

  9:26 PM    

Before the establishment first modern bank of Nepal, the lending of money used to be between person to person.Nepal bank Ltd. is the first modern bank of Nepal. It is taken as the milestone of modern banking of the country. Nepal bank marks the beginning of a new era in the history of the modern banking in Nepal. This was established in 1937 A.D. Nepal Bank has been inaugurated by King Tribhuvan Bir Bikram Shah Dev on 30th Kartik 1994 B.S. Nepal bank was established as a semi government bank with the authorized capital of Rs.10 million and the paid -up capital of Rs. 892 thousand. Until mid-1940s, only metallic coins were used as medium of exchange. So the Nepal Government (His Majesty Government on that time) felt the need of separate institution or body to issue national currencies and promote financial organization in the country.


Nepal Bank Ltd. remained the only financial institution of the country until the foundation of Nepal Rastra Bank is 1956 A.D. Due to the absence of the central bank, Nepal Bank has to play the role of central bank and operate the function of central bank. Hence, the Nepal Rastra Bank Act 1955 was formulated, which was approved by Nepal Government accordingly, the Nepal Rastra Bank was established in 1956 A.D. as the central bank of Nepal. Nepal Rastra Bank makes various guidelines for the banking sector of the country.
A sound banking system is important for smooth development of banking system. It can play a key role in the economy. It gathers savings from all over the country and provides liquidity for industry and trade. In 1957 A.D.Industrial Development Bank was established to promote the industrilization  in Nepal, which was later converted into Nepal Industrial Development Corporation (NIDC) in 1959 A.D.
Rastriya Banijya Bank was established in 1965 A.D. as the second commercial bank of Nepal. The financial shapes for these two commercial banks have a tremendous impact on the economy. That is the reason why these banks still exist in spite of their bad position.
As the agriculture is the basic occupation of major Nepalese, the development of this sector plays in the prime role in the economy. So, separate Agricultural Development Bank was established in 1968 A.D. This is the first institution in agricultural financing.
For more than two decades, no more banks have been established in the country. After declaring free economy and privatization policy, the government of Nepal encouraged the foreign banks for joint venture in Nepal.
Today, the banking sector is more liberalized and modernized and systematic managed. There are various types of bank working in modern banking system in Nepal. It includes central, development, commercial, financial, co-operative and Micro Credit (Grameen) banks. Technology is changing day by day. And changed technology affects the traditional method of the service of bank.
List of different types of Bank in Nepal are:-

  • 1Central Bank
  • 2Commercial Banks (Class A)
  • 3Development Banks (Class B)
  • 4Finance Companies (Class C) 
  • 5Micro Credit Development Banks (Class D) 


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