Before 1937 AD, the banking system didn’t exist
in Nepal. It began with the establishment of Nepal Bank Limited (NBL) by
Juddha Shumsher as the first ever commercial bank in our country. About 51%
of it is owned by the government of Nepal and the remaining 49% is owned by the
general public. For those who didn’t know, Ka Barga Banks are Class A banks,
which for the most part are commercial banks.
What is a commercial bank?
A commercial bank serves the general public financially by providing various loan services, savings accounts, making deposits and so on whereas a central bank can do what a commercial bank does, for nations and even governments. A central bank is given the responsibility and authority to monetary policy which means that it is this bank which formulates rules and regulations for other banks to follow.
Picture credit: https://banksnepal.com/
Nepal Rastra Bank (NRB) is the central bank of Nepal,
established in 1956 AD. All the banks in Nepal are controlled and operated by
the rules set by Nepal Rastra Bank. There are four classes of banks in Nepal.
They are Commercial Banks (Class A or Ka Barga), Development Banks (Class B or
Kha Barga), Finance Companies (Class C or Ga Barga), and Micro Credits
Development Banks(Class D or Gha Barga). There are 27 Class A banks currently,
as per NRB. They have been listed below, along with their paid-up capital
in crores:
S.No. |
Name of the bank |
Head Office |
Paid Up in Capital |
1. |
Nepal Bank Ltd (NBL) |
Dharmapath, Kathmandu |
1128.28 |
2. |
Rastriya Banijya Bank
Ltd (RBB) |
Singhadurbar Plaza, Kathmandu |
900.48 |
3. |
Agriculture
Development Bank Ltd (ADBL) |
Ramshah path, Kathmandu |
1498.92 |
4. |
Nabil Bank Ltd (NABIL) |
Beena Marg, Kathmandu |
1009.75 |
5. |
Nepal Investment Bank
Ltd (NIBL) |
Durbarmarg, Kathmandu |
1424.90 |
6. |
Standard Chartered
Bank Nepal Ltd (SCBNL) |
Naya Baneshwor, Kathmandu |
801.14 |
7. |
Himalayan Bank Ltd
(HBL) |
Kamaladi, Kathmandu |
937.23 |
8. |
Nepal SBI Bank Ltd
(NSBI) |
Keshar mahal, Kathmandu |
895.62 |
9. |
Nepal Bangladesh Bank
Ltd (NBB) |
Kamaladi, Kathmandu |
849.58 |
10. |
Everest Bank Ltd (EBL) |
Lazimpat, Kathmandu |
851.02 |
11. |
Kumari Bank Ltd
(Kumari) |
Durbarmar, Kathmandu |
1300.29 |
12. |
Laxmi Bank Ltd (Laxmi) |
Hattisar, Kathmandu |
981.26 |
13. |
Citizens Bank
International Ltd (Citizens) |
Narayanhiti Path, Kathmandu |
908.98 |
14. |
Prime Commercial Bank
Ltd (Prime) |
Kamalpokhari, Kathmandu |
1398.52 |
15. |
Sunrise Bank Ltd
(Sunrise) |
Gairidhara, Kathmandu |
896.78 |
16. |
Mega Bank Nepal Ltd
(Mega) |
Kamaladi, Kathmandu |
1313.86 |
17. |
Century Commercial
Bank Ltd (Century) |
Putalisadak, Kathmandu |
841.55 |
18. |
Sanima Bank Ltd
(Sanima) |
Nagpokhari, Kathmandu |
880.14 |
19. |
Machhapuchhre Bank Ltd
(MBL) |
Lazimpat, Kathmandu |
845.85 |
20. |
NIC ASIA Bank Ltd
(NIC) |
Thapathali, Kathmandu |
971.77 |
21. |
Global IME Bank Ltd
(Global) |
Kamaladi, Kathmandu |
1897.59 |
22. |
NMB Bank Ltd (NMB) |
Babar mahal, Kathmandu |
1395.10 |
23. |
Prabhu Bank Ltd
(PRABHU) |
Babar mahal, Kathmandu |
1031.55 |
24. |
Siddhartha Bank Ltd
(SBL) |
Hattisar, Kathmandu |
978.78 |
25. |
Bank of Kathmandu
Lumbini Ltd (BOK) |
Kamalpokhari, Kathmandu |
854.69 |
26. |
Civil Bank Ltd (Civil) |
Kamaladi, Kathmandu |
800.34 |
27. |
Nepal Credit and
Commerce Bank Ltd (NCC) |
Bagbazaar, Kathmandu |
935.39 |
Investopedia
ranked these aforementioned Class A banks in terms of deposit and they’ve
mentioned that this was based on the un-audited second quarterly report of the
fiscal year 2077/78. This compilation makes it easier to understand how the
present ranking has been for these commercial banks.
Every bank has to submit its financial report to Nepal Rastra
Bank. For this, they have to calculate their growth performance too. This is
done based on organic and inorganic growth. At NIBL Ace Capital states, organic growth is purely performance-oriented
and is not influenced by mergers and acquisitions, which falls under a
company’s corporate activities. Whereas, inorganic growth is calculated by the
company’s growth chart influenced by these corporate activities.
Collectively this organic and inorganic growth is what shows the
growth figure of a bank. It is collected every year and when this year’s
progress exceeds the preceding year, that is when growth has been achieved.
Hence, Year on Year growth figure and Quarterly growth rate is compared and
assessed to calculate the bank’s growth rate.
So, these were the banks that fall under Class A or Ka Barga in
the context of Nepal. These banks provide different types of loans as well,
which we will tune into in another blog post. So stay tuned with us.
We hope this helped.