Current Status Of Banking In Nepal [Updated]

August 27, 2023 | Investopaper

As of Ashad’s end, 2080 BS (Mid-July, 2023), 5.11 crores deposit accounts have been opened in banks and financial institutions. This is the number of accounts opened only in commercial banks, development banks, and finance companies. This number will be higher if the accounts opened in the MFI are also included. The number of bank accounts is more than the total population of Nepal. According to the Central Statistics Office, the total population of Nepal is almost 3 crores.

Just because there are more bank accounts than the population does not mean that all Nepalis have access to bank accounts. An individual can also open an account in more than one bank and financial institution. That is why there are more bank accounts than the population.

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Banks & Financial Institutions (BFIs) In Nepal

With the introduction of the merger by-laws, the number of banks and financial institutions (BFIs) has gradually declined in Nepal. Until the end of Ashad, 2080 BS, the number of Banks and Financial Institutions has declined to 112.  The total number of BFIs (A, B & C) stood at 54. The ‘A’, ‘B’ ‘C’ and the ‘D’ class institutions are undergoing merger/acquisition aggressively.

Altogether 20 commercial banks, 17 development banks, 17 finance companies, and 57 microfinance are currently operating (as of Mid-July 2023) in Nepal. The number of BFIs is expected to decline. The central bank’s initiative to induce a big merger (merger of commercial banks) is likely to bring the number of financial institutions further down.

Related: Merger/Acquisition By Commercial Banks In Nepal

Number of BFIs And Their Branches

Until Mid-July, 2023, Commercial Banks have the highest number of branches (among A,B & C class institutions) of 5,049 while development banks and finance have 1,128 and 284 branches respectively. Similarly, microfinance institutions have 5,128 total branches.

The table below shows the number of BFIs including the ‘D’ class microfinance and their branches.

Banks/BFI Class No. Of BFIs No. Of Branches
Commercial Banks (A) 20 5,049
Development Banks (B) 17 1,128
Finance (C) 17 284
Microfinance (D) 57 5,128
Infrastructure Development Bank 1
Total 112 11,589

Also Read:

Net Profit of Commercial Banks in Nepal [With Ranking]

List of Banks And Financial Institutions In Nepal

Branches Of BFIs Based On The Province

Bagmati State has the highest penetration in terms of the number of branches of BFIs. Altogether 3,025 branches of BFIs are operating in Bagmati State. However, Karnali Province has the lowest banking exposure with only 466 banking branches available. Out of which, 236 branches are of microfinance companies.

The table below shows the branches of BFIs in the different provinces (As of Mid July 2023).

Province  A B C D Total
Koshi 762 194 36 871 1,863
Madhesh 578 82 51 1,061 1,772
Bagmati 1,824 332 106 763 3,025
Gandaki 601 190 37 576 1,404
Lumbini 748 257 46 1,051 2,213
Karnali 206 21 3 236 466
Sudurpaschim 330 52 5 459 846
Total 5,049 1,128 284 5,128 11,589

Related: Importance of Banking in Developing Countries like Nepal

Presence Of Commercial Banks at Local Level

Commercial banks have reached 750 out of 753 local levels formed after the country’s transition to federalism. After the launch of a program called ‘Bank Account for All Nepalis’, the number of bank accounts has increased due to increased financial literacy. In four states, banks have reached all local levels.

The table below shows the presence of commercial banks at the local level [ As of Mid-July 2022].

Province  Number of Local Levels Local Levels Having Bank Branches
1 137 137
2 136 136
Bagmati 119 118
Gandaki 85 85
Lumbini 109 109
Karnali 79 78
Sudurpaschim 88 87
Total 753 750

Also Read: Contribution of Banking sector to the GDP of Nepal

Deposit And Loan Accounts On BFIs

Altogether, 5.11 crores deposit account exists in the A, B, or C class banks. Out of this, commercial banks have the largest deposit accounts of 4.39 crores. Likewise, 18.45 lakh borrowers have taken loan facilities from these BFIs.

The table below presents the number of Deposit and Loan Accounts [As of Mid-July, 2023]:

BFIs No. of Deposit Accounts No. of Loan Accounts
A 43,981,888 1,512,193
B 6,413,689 291,236
C 782,346 41,784
Total 51,177,923 1,845,213

Related: E-Banking In Nepal: Every Thing You Need To Know

Branchless Banking Centers And Customers

At current, the BFIs are operating 1,319 branchless banking centers. There are currently 320,749 branchless banking customers in Nepal.

BFIs Number of Branchless Banking Centers Number of Branchless Banking customers
A 1,298 320,70
B 21 49
Total 1,319 320,749

Also Read: Current Status Of Insurance In Nepal

Mobile Banking, Internet Banking, And ATM Users

A, B, and C Class BFIs have opened in a total of 4,855 ATMs out of which commercial banks occupy 4,465 ATMs. The number of mobile banking users has surged rapidly in recent times. Altogether 2.13 crores customers are currently taking banking services through the use of mobile banking. Likewise, 18.56 lakh users are involved in the internet banking service.

See the current data (Mid-July 2023) related to mobile banking, internet banking, and ATMs in the table below:

A B C Total
No.of Mobile Banking Customers 18,438,455 2,772,852 152,682 21,363,989
No. of Internet Banking Customers 1,347,970 494,753 13,472 1,856,195
No. of ATMs 4,465 346 44 4,855

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Debit Cards, Credit Cards, And Prepaid Cards

With the banks creating awareness and providing various discounts on the use of cards for day to day transactions, there is decent growth in the number of cardholders. As of Ashad’s end 2080 BS [Mid July 2023], a total of 1.22 crore customers are users of debit cards while 2.83 lakh bank customers use credit cards. Similarly, 1.37 lakh customers are involved in the usage of prepaid cards.

A C Total 
No. of Debit Cards 11,358,426 826,506 60,553 12,245,485
No. of Credit Cards 283,126 646 283,772
No. of Prepaid Cards 135,626 1,494 137,120

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15 thoughts on “Current Status Of Banking In Nepal [Updated]

  • September 21, 2021 at 6:26 pm

    Your research helps a lot for banking preparation

  • November 26, 2021 at 3:57 am

    Thank you so much for this. Hope to learn more from you.

  • December 22, 2021 at 4:20 pm

    Thank you so much for providing updated information related to BFIs.

    • August 10, 2022 at 3:49 am

      After merger how many bank are there in 2022 update should done in 1 month

  • March 14, 2022 at 9:10 am

    Informatic article, Thanks for Sharing.

  • January 12, 2023 at 5:33 pm

    How many mobile only banks like- Paytm payments Bank and Airtel payments Bank are currently available in Nepal which are only for Nepali citizen?
    Please do not include banks of Indian origin

  • October 4, 2023 at 11:10 am

    What is the ratio of deposit to GDP and credit to GDP of all BFIs

  • December 10, 2023 at 12:49 am

    Really grateful thanks for sharing


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