Finance is the central base of trade, industry, agriculture, and development. Economical Development of a nation completely relies upon its banking system. The bank is a financial institution that receives deposits and channels those sediments into lending activities, either directly by loaning or indirectly through capital markets.
The services banks allow clients to have to do nearly wholly with managing money or finances for other people. Banks are significant to our economy. Banks render several financial services exceeding the common methods of holding deposits and lending money. Commercial, retail, and central banks are three principal types.
Commercial Banks are those banks which render familiar services such as checking and savings accounts, credit cards, investment services, and others. Banks extended their assistance only to businesses, including credit and debit cards, bank accounts, deposits and loans, and secured and unsecured loans. Due to various circumstances, commercial banks are also facing more with investment banks in money market operations, bond underwriting, and financial advisory work.
Nepal Rastra Bank has published a list of the banks and financial institutions as of Ashadh end 2075. Currently, there are 33 development banks in total out of which 11 are national-level development banks, 4 are 1 district development banks, 1 bank is 4-10 district development bank, and the remaining 7 banks are 1-3 district development bank. Gandaki Bikas Bank Limited has the highest paid-up capital among the development banks of Rs 2.75 arba while the lowest paid-up capital is of Salapa Development Bank of Rs 2.80 crore.
RBB – largest number of branches
Rastriya Banijya Bank is the most comprehensive ’A’ grade commercial bank in Nepal with 161 branches all across Nepal.
With the vision to provide innovative banking services to everyone, every time and everywhere for the economic development of the nation.” established on January 23, 1966 ( 2022 Magh 10 ) – Rastriya Banijya Bank Limited is synonymous of constant and people’s bank in Nepal. It is one of the pioneer banks in the nation with a memoir of approximately a half-century. Originally established under the RBB act 2021 with the full control of the ministry of Nepal, the Bank has been operating under the Bank and Financial Institute Act and Company acts in present.
RBBL which has made the great history of providing for the monetization of the economics, reducing the dual currency in the market, starting introductory economic education, help flourish industrial and commercial area of the country has now emerged as a modern and strong financial institute of the country.
RBBL has reportedly, 2600 hands has extended its sections in most of the country through multiple placement sockets of 219 branches, 17 counters, 93 branches less banking (BLB) and 165 ATMs.The Bank with the most distinguished public confidence- exhibited in the most leading security base and increasing propensity for branch enterprise in the different parts -has stood as a pillar in the economic course of the country.
The Bank with as many as 1.7 millions happy /immediate customers extending from poor to elite ones and millions of obscure ones, has attracted big imprint in the picture of country’s economy through its significant involvement in the best use of its resources to intensify the production, income and employment opportunities. The Bank is effectively retained to present its most desirable for the socio-economic advancement of the country and bodies in the days to come.
Following RBB, the Agricultural Development bank is found to have the most number of branches in Nepal.
Established with the principal aspiration of implementing institutional prestige for improving the production and potency of the agricultural sector in the country, the Agricultural Development Bank, Nepal was instituted in 1968 under the ADBN Act 1967, as a replacement to the cooperative Bank. Later in years, the Land Reform Savings Corporation was mixed with ADBN in 1973.
Succeeding improvements to the Act permitted the bank to increase trust to minute farmers under group contracts and increase the scope of funding to support cottage industries. The improvements also sanctioned the bank to involve in monetary funding projects for the mobilization of national sources.
Agricultural Development Bank Limited (ADBL) is an independent body chiefly controlled by the Government of Nepal. The bank has been operating as a premier rural account company following the last three decades, presenting a more than 67 percent of institutional loan supply in the country. Consequently, rural banking is the primary operational area of ADBL. Moreover, the bank has also been implicated in commercial banking operations since 1984.
The performance of the Bank and Financial Institution Act (BAFIA) eliminated all Acts associated with financial institutions including the ADBN Act, 1967. With regard to that, the BAFIA, ADBL has been consolidated as an unrestricted limited company on July 14, 2005. Therefore, ADBL functions as an “A” division financial Institution under the constitutional structure of BAFIA and the Company Act, 2053.