August 21, 2022 | Investopaper
Commercial banks are the ‘A’ class financial institutions in Nepal. Nepal Rastra Bank (NRB) regulates all the banks and financial institutions (BFIs) of Nepal.
NRB has grouped the BFIs into four major categories.
1. “A” Class Commercial Banks
There are currently 26 ‘A’ class commercial banks in Nepal as per Nepal Rastra Bank report of the Mid July 2022. All commercial Banks in Nepal provide deposit facility, various loan facilities, advanced ABBS services, Internet Banking along with the ATM facilities through their networks.
Nepal Bank (NBL) is the first commercial bank of Nepal. It was established on 1937. Nabil Bank is the first private sector bank of Nepal. It started its operation in 1984. Previously known as Nepal Arab Bank, Nabil Bank is the first foreign joint venture bank of Nepal.
The table below shows the list of ‘A’ class commercial banks of Nepal along with the paid-up capital [Ashad’s End, 2079 BS].
List of ‘A’ Class Commercial Banks in Nepal
|S.No.||Bank Name||Operation Date (A.D.)||Head Office|
|1||Nepal Bank Ltd.||11/15/1937||Dharmapath|
|2||Agriculture Development Bank Ltd.||1/21/1968||Ramshahpath|
|3||Nabil Bank Ltd.||7/12/1984||Beena Marg|
|4||Nepal Investment Bank Ltd.||3/9/1986||Durbarmarg|
|5||Standard Chartered Bank Nepal Ltd.||2/28/1987||Nayabaneshwor|
|6||Himalayan Bank Ltd.||1/18/1993||Kamaladi|
|7||Nepal SBI Bank Ltd.||7/7/1993||Kesharmahal|
|8||Everest Bank Ltd.||10/18/1994||Lazimpat|
|9||Kumari Bank Ltd.||4/3/2001||Durbarmarg|
|10||Laxmi Bank Ltd.||4/3/2002||Hattisar|
|11||Citizens Bank International Ltd.||4/20/2007||Narayanhitipath|
|12||Prime Commercial Bank Ltd.||9/24/2007||Kamalpokhari|
|13||Sunrise Bank Ltd.||10/12/2007||Gairidhara|
|14||Century Commercial Bank Ltd.||3/10/2011||Putalisadak|
|15||Sanima Bank Ltd.||2/15/2012||Nagpokhari|
|16||Machhapuchchhre Bank Ltd. *||7/9/2012||Lazimpat|
|17||NIC Asia Bank Ltd. *||6/30/2013||Thapathali|
|18||Global IME Bank Ltd. *||4/9/2014||Panipokhari|
|19||NMB Bank Ltd. *||10/18/2015||Babarmahal|
|20||Prabhu Bank Ltd. *||2/12/2016||Babarmahal|
|21||Siddhartha Bank Ltd. *||7/21/2016||Hattisar|
|22||Bank of Kathmandu Ltd. *||7/14/2016||Kamaladi|
|23||Civil Bank Ltd. *||10/17/2016||Kamaladi|
|24||Nepal Credit and Commerce Bank Ltd. *||1/1/2017||Bagbazar|
|25||Rastriya Banijya Bank Ltd. *||5/2/2018||Singhadurbar Plaza|
|26||Mega Bank Nepal Ltd. *||5/13/2018||Kamaladi|
*Joint operation date after merger
‘A’ Class Commercial Banks In Nepal With Paid-Up Capital
Paid-up capital is the money provided by the shareholders into the company since the establishment. It includes the initial fund accumulated from the shareholders plus additional capital injected through right/ bonus shares or FPO as the company moves forward. Higher the capital, the greater the financial strength of the company. In times of economic difficulty, companies with huge capital tend to survive than companies with low capital.
In Nepal, ‘A’ class commercial banks should have a minimum capital of Rs 8 Arba. This is as per the directive by Nepal Rastra Bank (NRB), the regulating body of the banking and financial institutions of Nepal. Until Mid July 2022, Global IME Bank Limited is the largest commercial bank of Nepal in terms of paid-up capital. Global IME Bank has Rs 23.79 Arba in capital. Nabil Bank is second to Global IME Bank with Rs. 22.83 Arba in capital. Civil Bank has the lowest capital of Rs. 9.07 Arba.
The paid-up capital of the 26 ‘A’ class commercial banks of Nepal is shown in the table below:
Paid-Up Capital of Commercial Banks in Nepal
|S.No.||Commercial Banks||Paid up capital (Rs.’Arba’)|
|1||Global IME Bank||23.79|
|3||Prime Commercial Bank||18.65|
|4||Agricultural Development Bank||18.62|
|6||Nepal Investment Bank||18.3|
|7||Mega Bank Nepal||16.12|
|8||Rastriya Banijya Bank||14.94|
|15||NIC Asia Bank||11.56|
|19||Bank Of Kathmandu||10.62|
|22||Nepal SBI Bank||9.82|
|23||Century Commercial Bank||9.55|
|25||Standard Chartered Bank Nepal||9.42|
Note: Paid-up capital based on the financial statement of Mid-July 2022 [Ashad End, 2079 BS]
Paid-up capital of Agricultural Development Bank Limited (ADBL) includes Rs 5.43 Arba worth of Preference Share.
You May Also Like: Financial Analysis of Commercial Banks of Nepal