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 stabilize 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 categorized 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 specialized functions. The Central Bank, Nepal Rastra 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 is to provide funding (equity capital and loan capital) to novel businesses and projects for economic development. Finance companies are specialized to purchase consumer goods by granting small loans further or by purchasing time sales contracts of merchants. Micro credit development banks are mainly established in developing countries to provide a wide range of financial services especially on saving accounts to the poor.
Banking sector is one of the fastest growing industry in Nepal. We have got many banks competing with each other for providing the best service to the customers. The development in banking sector has increased banking habit in Nepali people. Banks are now available in almost all district of Nepal. Almost all banks have ebanking service these days. Every bank have different specialties. Some may stand out in customer service while some may stand out in its cheaper interest rates. In the article, we have listed few best banks. The ranking is done as per their work principle, bank policy and customer service.
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 in 1986.
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%.
NIBL is the other that comes in mind when we talk about banks. On of the oldest bank in Nepal, NIBL has always maintained it reputation. The best thing about NIBL is that it has the most number of ATMS through out the nation. So, withdrawal of money is possible easily. The trust people have for NIBL makes it in the top. Jyoti Prakash Pandey is the present CEO of Nepal Investment Bank Limited. NIBL has won the banker of the year awards 2003, 2005, 2006, 2008 and 2010.
- 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.
Standard Chartered is a British multinational financial and banking service Standard Chartered bank has taken the online banking service company into another level by providing its clients a facility of opening account from home. It has its headquarters in London, England. In Nepal, with their online account opening service you just fill in your details and you can get your account opened at the bank without having to visit the bank or being in queue. With 21 ATMS and 12 branches all over the country Standard Chartered can definitely give an excellent banking experience.
- 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.
Nabil bank is the first joint venture bank of Nepal which started its operation in Nepal in July, 1984. It operates under parent organization NB international limited. Sashin Joshii the present CEO of Nabil Bank. With around 62 branches all over the country and 115 ATMs Nabil bank stands out in terms of its customer service.
- 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.
- Mega Bank: Mega Bank has won the Bank of the Year award for many times. That is probably because of its customer service and easy services, The best thing about mega bank is that they provide fast service. The present CEO is Anupama Khunjeli. There are around 44 branches of Mega Bank all over the country. So you can use their banking service wherever or whenever required.
- Nepal Rastra Bank: Nepal rastra bank is not a bank for the public. We can’t do transactions with the bank but it is the bank of the banks. Rastra bank is the one that controls all the commercial bank we trust blindly. So Nepal rastra bank definitely makes it up to the list. NRB fixes exchange rates, interest rates and provides loan to our commercial banks and act as lender of last resort in crucial times. Governor Dr. Chiranjibi Nepla is now the head of Rastra Bank. It was established in 1956 as a regulatory and supervisory body for banks and financial institution.
This list is made on my experience and opinion. Other than these banks, there are other emerging banks as NIC Asia, SBI Bank which have good service. All of them have different specialties and different weaknesses but its good that we have many so many options to choose from. Tell us your favorite bank in the comment section.