Investing has been part of human existence for centuries. Who invests, and why? How does it affect their fortune? How great would it be if we know the best banks to invest in Nepal?
Investing in stocks allows people to grow their income further and build some wealth over time. You may change your fortune if you know a lot about investing. Otherwise, you will end up with nothing.
Wouldn’t it be great if we had proper knowledge about investing in banks? Let me help you find some blue-chip banks in Nepal.
Top Banks to Invest in Nepal
A bank is a financial institution that grants loans and accepts deposits. Since the 1980s, people have been saving their money in banks. Additionally, they provide insurance and safety.
To go public, private banks need to issue Initial Public Offering (IPO). Companies’ shares cannot be listed on NEPSE without an IPO. The way they provide interest on deposits intrigues individuals.
Depending on the bank’s policy, interest rates may differ. It has become a part of our daily lives. It is estimated that more than 65% of the people in Nepal have access to a bank account, according to a report by Nepal Rastra Bank.
Banks aren’t just places to deposit money or get loans. Banks are often viewed as stocks by many of them. As soon as they need money, they sell the shares they purchase in the bank. The share price of a bank is determined by its performance and ability to distribute high profits.
Hence, these are the best banks to invest in Nepal.
Nabil Bank Limited (NABIL)
Nepal’s first foreign joint venture bank was Nabil Bank Limited, which began operations in 1984 AD. The institution was set up to provide international standard modern banking services to various sectors in the country.
Providing a good dividend to investors and making them happy is one of its strengths. Though the share price of NABIL is higher than other companies, it has been able to distribute good dividends to its investors. NABIL Bank seems to be the best bank to invest in Nepal based on its performance.
Throughout the country, Nabil bank has more than 118 branches and over 115 ATMs. Its head office is located at Durbarmarg, Kathmandu.
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Prabhu Bank Limited (PRVU)
Prabhu Bank Limited is one of Nepal’s fastest-growing banks. It has grown phenomenally during its short existence.
With the merger of Grand Bank Nepal Limited, Kist Bank Ltd, Prabhu Bikash Bank Ltd, Gaurishankar Development Bank Ltd, and Zenith Finance Ltd in 2016, Grand Bank Nepal Limited became an “A” class financial institution licensed by the Nepal Rastra Bank.
You should invest in this bank if you want to make money in Nepal. Prabhu Bank has 208 branches and 157 ATM booths. Its head office is located in Babarmal, Kathmandu.
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NIC Asia Bank Limited (NICA)
NIC Asia Bank Limited is one of the largest private-sector commercial banks in the country. The organization was formed on July 21, 1998. NIC Bank and Bank of Asia Nepal were merged to form the bank. At the moment, it ranks among the best banks to invest in Nepal.
It has established itself as one of the best and most successful commercial banks in Nepal today. NIC Asia was named Bank of the Year in both 2013 and 2007 by the Banker, Financial Times, UK.
NIC Asia Bank has 352 branches, 471 ATMs, and 75 extension counters in Nepal. The company’s headquarters are located in Thapathali, Kathmandu
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Global IME Bank Limited (GBIME)
In 2007, Global IME Bank Limited was established as an “A” Class commercial bank with the aim of providing all banking services. The company was formed in 2012 by the merger of Global Bank Limited, IME Financial Institution, and Lord Buddha Finance Ltd.
Initially, the bank was established with Rs 1 billion in paid-up capital, which has since increased to Rs 18.97 billion. As part of the 2014 Bank of the Year Award, Global IME Bank was recognized for its outstanding performance.
It has 273 branches, 47 extension counters, and 247 ATMs across the country. The company’s head office is located in Kamladi, Kathmandu.
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Everest Bank Limited (EBL)
Everest Bank Limited was founded in 1994 to provide efficient banking services to various segments of society. One of the country’s leading banks, it has contributed to the nation’s development on the agricultural and industrial fronts.
Punjab National Bank is the joint venture of the bank which holds 20% of the equity. PNB has provided a variety of support to the bank in accordance with their agreement.
There are 102 EBL branches in the country, 21 revenue counters, and 132 ATMs. Its head office is located at Lazimpath, Kathmandu.
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Nepal Bank Limited (NBL)
Nepal Bank Limited is the first bank in Nepal. On Kartik 30th, 1994 BC, it was founded. Tribhuvan’s bank marked the beginning of a new era of informal banking in Nepal.
NBL has 211 branches and 86 ATMs across the country. Its head office is located at Dharmapath, Kathmandu.
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Muktinath Bikash Bank Limited (MNBBL)
The Muktinath Bikash Bank Limited was incorporated on 3rd January 2007. Nepal Rastra Bank licensed it to operate as a “B” Class National Level Financial Institution.
MNBBL is one of Nepal’s top development banks. The bank offers a variety of services and products to its customers at competitive rates. The company has experienced tremendous growth in a short period of time. You should invest in this bank if you want to make money in Nepal.
The bank currently has 155 branches and 27 ATMs across the country. The company’s head office is located in Kathmandu, at Kamladi.
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Prime Commercial Bank Limited (PCBL)
As Nepal’s 21st commercial bank, Prime Commercial Bank Ltd was established in September of 2007. It is registered as “A” Class Financial Institution under Nepal’s bank and financial institution act.
PCBL is one of Nepal’s top 10 commercial banks. The bank’s shares trade actively on the secondary market and are listed on the Nepal Stock Exchange (NEPSE).
Prime Commercial Bank has 193 Branches and 106 ATMs throughout the country. Its head office is located at Kamalpokhari, Kathmandu.
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Agriculture Development Bank Limited (ADBL)
In 1968, the Agriculture Development Bank of Nepal was established with the purpose of enhancing production and developing the agricultural sector.
Since the BAFIA took over all the BFIs, the bank has operated as a public limited company under the Companies Act 2006 and has been licensed as an “A class financial institution” by the central bank.
51 percent of the bank shares are owned by the government, while 49 percent are owned by the general public. With its investment in trade, agriculture, commerce, and other sectors, it is one of the leading commercial banks in Nepal.
ADBL has 278 branches and 70 ATMs across the country. The organization’s head office is in Putalisadak, Kathmandu.
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Siddhartha Bank Limited (SBL)
Siddhartha Bank has established itself as one of Nepal’s most efficient and fastest-growing banks. It was founded in 2002 AD. It is an “A” Class Financial Institution licensed by the Nepal Rastra Bank.
The bank’s shares are traded on the Nepal Stock Exchange (NEPSE). Investors have received good returns from the company. The bank is one of the best places to invest in Nepal.
There are 189 branches of SBL and 209 ATMs located throughout the country. Its head office is located in Hattisar, Kamaladi, Kathmandu.
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- Mega Bank Limited
- Nepal Bangladesh Bank Limited
- NMB Bank Limited
- Nepal SBI Bank Limited
- Nepal Investment Bank Limited
- Excel Development Bank Limited
- Corporate Development Bank Limited
- Mahalaxmi Bikash Bank Limited
These are the best banks to invest in Nepal. In addition, they have been providing good returns to shareholders.
While I don’t advise you to invest in every one of them, with their present performance and good growth they have the greatest potential of all the banks present in the country.
Some of the banks on the honorable mention list are also cheap and undervalued. Furthermore, they may be able to increase dividends.
You can invest in these banks with patience and proper study. It doesn’t mean you have to own these stocks, you may find undervalued stock at a minimum price too.