Banks are any financial institutions that are built for accepting deposit from the general public and for creating the credit. For any country, banking is imperative to stabilise the economic and financial condition of the country, and as such, banks are highly regulated. It performs lending activities either directly or indirectly through capital markets. In Nepal, Nepal Banks are progressing a lot with new features and new services to their customers.
Banking service in Nepal is one of the oldest services. Its development lies in the Vedic Times (200 to 1400 BC). But, the modern banking institution came into being in 1937 A.D. after Nepal Bank Limited, the first commercial bank was established in Nepal. There has been a development of different banks since then. Banks in Nepal are categorised as Central Bank, Commercial Banks (Class A), Development Bank (Class B), Finance Companies (Class C) and Micro Credit Development Banks (Class D).
All these categories of Nepal banks have their functions to perform, and each entails some specialised functions. The Central Bank controls the whole nation’s money supply and monetary policy. It also oversees commercial banking system of their respective countries. Commercial Banks provide services regarding deposit acceptance, business loans and basic investment products. Developmental banks function to provide funding (equity capital and loan capital) to novel businesses and projects for economic development. Finance companies are specialised to purchase consumer goods by granting small loans further or by purchasing time sales contracts of merchants. Microcredit development banks are mainly established in developing countries to provide a wide range of financial services especially on saving accounts to the poor.
Top 10 Nepal Banks
Among various Nepal banks extant in Nepal, the top 10 banks which are most popular among the people are as follows. All top 10 list of Nepal banks is listed with their interest rates. The interesting facts of Nepal banks is that they do have good market value in nepal stock exchange and NEPSE.
- Nepal Bank Limited: This is the first commercial bank of Nepal which was established in 1937 A.D. It is a government-owned bank with headquarter in Dharmapath, Kathmandu.
It has 118 branches strewn in different areas of the country. It provides services regarding loan and deposits, Internet banking and ATM facilities. For deposits, different types of saving account are present. Initial deposit depends on the saving account. It provides 2-7% of interest on daily balance in the savings account.
- Nepal Investment Bank Limited: It was established in1986.
Initially, it was a joint venture between Nepalese and French Company. However, in 2001 the Nepalese investors bought all the shares of the French Company. It is one of the trusted and popular banks of Nepal. It provides various options for saving the account. It has 47 branches and 82 ATM outlets throughout the country. The interest rate on saving accounts range from 0.15 to 2.25%.
- Nepal SBI Bank Limited: It is a subsidiary bank of State Bank of India. It has 73 outlets which subsume 62 branches, seven extension-counters and four administrative offices across the 32 districts of the country. The bank has a network of 82 ATM terminals, 2 Cash Deposit Machines and 2 Mobile ATMs. It offers different deposit schemes and provides interest on Daily Balance in all Savings Schemes irrespective of the minimum balance criteria. In the saving account, interest rate range from 0.5 to 2.75%.
- Standard Chartered Bank Nepal Limited: It is a subsidiary of Standard Chartered PLC established in 1987. With 15 points of representation and 23 ATMs across the country, it has been providing services to its clients from a large geographical area. The Interest rate is 1% per annum for a normal saving account.
- Nabil Bank Limited: Founded in 1984, Nabil Bank is the first private sector bank in Nepal has branches all over the country. Its headquarters is located in Durbarmarg, Kathmandu. It provides full-fledged commercial bank services through its 52 points of representation. On the saving account, it provides the interest rate of 2.5 to 4% per annum.
- Himalayan Bank Limited: It is one of the largest private banks of Nepal founded in 1993. It consists of 44 branches, and its headquarter lies in Kamaladi, Kathmandu. It provides 1.75% interest rate in the normal savings account.
- Global IME Bank Limited: It was established in 2007 with the largest capital base of that time. It operates 94 branches and six extension counters throughout Nepal. There are 103 ATMs throughout the country. It provides 0.75 to 3% interest rates according to the various saving deposits.
- Machapuchchhre Bank: It is the first regional bank in the western region of Nepal, established in 1998. It contains 56 branch offices, one extension counter and 71 ATMs spread all over the country. It provides 0.5 to 3.25% interest rate per annum on different saving accounts.
- Everest Bank: It is the commercial bank of Nepal which is a joint venture of Punjab National Bank. Its headquarters is in Lazimpat, Kathmandu. It was founded in 1994. The bank has 61 branches, 84 ATM counters and five extension counters.
- Agriculture and Development Bank: This government owned bank of Nepal, established in 1968 has been providing credits mainly in the rural setting. It is labelled as “A” class financial institution and provides loans, savings and investments mainly in the agricultural sector of Nepal. In the saving account, interest rate ranges from 0.6 to 4.5% depending on different types of savings.