In this article, we will see some of the best banks in Nepal. With a strong management team, good vision, and the mission of the company, the bank celebrated its success by thanking its customers. Out of the 23 countries banks in Asia that applied for the” Euromoney award for excellence regional and country awards 2021”, Euromoney nominated the best banks of each country in terms of their contribution to the economy, innovation, and customer services. NEPAL INVESTMENT BANK successfully managed to bag the title among the Nepalese banks.
An Institute that has the exchange of knowledge is termed as a “school”, synonymously, the financial institution that accepts the deposits from the public and creates a demand deposit simultaneously making loans is termed as a “BANK”.
The concept of bank and banking emerged in ancient Assyria and Babylonia with merchants offering loans of grains as collateral within a barter system. With time, the system passed through different changes and alterations according to the best fitting situation. Currently, several types of banks are in operation such as retail, commercial, and investment banks.
Banking System of Nepal
The banking system usually differs from country to country. In the context of Nepal, the formal banking system can be traced back to 1937 when the first commercial bank Nepal Bank Limited started banking operations. Nepal Rastra Bank came into existence in 1956 as the central bank of Nepal. Nabil Bank was established in 1984 as Nepal Arab Bank and became the first private sector bank in Nepal. During the 1990s, Nepal’s financial system saw structural changes in its banking system and it not only remained confined to commercial banks but also witnessed the establishment of development banks, finance companies, microfinance institutions, savings and credit cooperative firms, and non-governmental organizations. Since then, Nepal’s banking system has been operating under the same setting, and there are a total of 151 banks and financial institutions encompassing 28 Class A commercial banks, 33 Class B development banks, 25 Class C finance companies, and 65 Class D microfinance financial institutions providing banking services under the direct supervision of Nepal Rastra Bank, and 13,578 savings and credit cooperatives under the supervision of the Department of Cooperatives. Altogether, Nepal has five categories of formal banking institutions as of now—four-under Nepal Rastra Bank and one under the Cooperative Department.
EUROMONEY AWARD WINNER BANKS
On July 14, Euromoney organized the “Euromoney Awards for Excellence” event where many banks from the country and regional levels participated in the nominations. In the country’s nomination, NIBL stood out amongst others from Nepal and bagged the title. Last year, Nabil Bank Limited (NABIL) was the winner of “Nepal’s Best Bank 2020”.
In its 35 years of establishment, the bank has maintained 86 branches all over the country. Similarly, it has around 131 ATM booths and 30 extension/revenue collection centers. Moreover, it has extended its branchless banking services to 58 units.
BEST BANKS IN TERMS OF DEPOSITS AND LOANS
Based on the unaudited fourth quarterly report of the fiscal year 2077/78, the commercial banks are ranked based on deposits and loans where NIC Asia books the position on the top of the table. It has the highest deposits from customers among the commercial banks of Nepal. Until the end of Asadh 2078 BS, NIC Asia Bank has deposited Rs 286.82 Arba and provided a loan of Rs248.81Arba to the customers. Likewise, Global IME Bank secures the second rank with the deposition of Rs 268.43 Arba and provision of Rs 228.89 Arba as a loan to customers. Similarly, Rastriya Banijaya bank and Nabil Banks follow the rank table.
However, based on the public view, Nabil Bank is considered to be the best bank in Nepal. It is a contradictory matter to state the best bank as the nomination could differ based on the criteria and the factors on which one categorizes the bank to be as best titled.
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