Celebrating 40 Years: Nabil Bank’s Journey and Future Plans

Kathmandu – Established in 1984 (BS 2041) and licensed as an ‘A’ class bank by Nepal Rastra Bank, Nabil Bank has entered its 41st year as of Friday. Nabil Bank Limited is the first private bank in Nepal with joint foreign investment. It was established following the limited liberalization of the financial sector through the annual budget of the fiscal year 2041/42, allowing the establishment of joint venture banks in Nepal. The first such private joint venture was Nepal Arab Bank (now Nabil Bank).

The inception of modern banking in Nepal is considered to have started with the establishment of this bank. After the UAE investors exited, the majority ownership of Nabil Bank came under the family of Binod Chaudhary. Known as the largest bank in Nepal, Nabil Bank has been continuously working to provide high-quality service through an extensive network.

On December 29, 2021, Nabil Bank merged with Nepal Bangladesh Bank, continuing under the name Nabil Bank, becoming even stronger. The bank has received numerous domestic and international awards and honors for its services in the banking sector. Periodically, the bank has been involved in various social responsibility programs, providing assistance during floods, landslides, and other times of need.

On its 40th anniversary, the bank announced several new plans. It launched the ‘Nabil Dukkha Ghar Karja’ scheme, offering loan interest rates of 8.4% for a seven-year term and 9.4% for a ten-year term. According to the bank, this scheme will be valid for 40 days starting from Friday. Additionally, the bank is offering various benefits for new account holders, including a 50% discount on ATM fees, credit card charges, locker charges, and fees for Nabil e-banking and mobile banking apps from Friday until August 20.

The bank plans to provide loans up to NPR 10 million for small and medium enterprises at a base rate plus 1% premium. For agriculture and production industries, it will offer loans up to NPR 50 million at a base rate plus 1.5% premium. At the 40th-anniversary event, CEO Gyanendra Dhungana announced plans to promote sustainable banking by reducing carbon emissions, investing in green technologies, and fostering socio-economic development through innovation and technology for simplified services.

Nabil Bank was the first in Nepal to introduce computerized banking, ATMs, mobile banking, MasterCard, debit cards, contactless payment cards, and neo-banking services. The bank has been active in institutional social responsibility, supporting areas such as environment, management, economic development, poverty eradication, science and technology, literature and culture, health, education, and sports.

The bank has also extended its support to other areas as needed, including aid to flood victims and organizing health camps and blood donation programs in various locations. It has provided ambulances and medical supplies to several hospitals and educational materials to various schools. Nabil Bank also operates the Nabil School of Social Entrepreneurship (Nabil SSE), which has conducted fellowship programs and certificate courses in social entrepreneurship. In collaboration with seven colleges and universities from each province, the bank offers a three-month certificate course for social entrepreneurs.

Through its CSR programs, Nabil Bank has contributed to the maintenance of the Bagmati Corridor, donated a 50 NM 3H capacity oxygen plant to Bir Hospital on its 37th anniversary, supported the Sri Ram Janaki Gargi Girls’ Gurukul for educating daughters, and aided the Women’s Service Association of the Army for establishing a maternity hospital in Makwanpur. The bank also supports the Manav Sewa Ashram, providing food and shelter to the homeless across all seven provinces, the National Disabled Research and Development Center Nepal, and the Artificial Limbs Center for providing prosthetic limbs.

During the COVID-19 crisis, the bank contributed to the Corona Fund established by the Ministry of Finance and provided NPR 2.825 million to the Karnali Provincial Government for setting up a PCR machine at Birendranagar Hospital in Surkhet. Additionally, Nabil Bank donated NPR 300,000 for the construction of a traffic police building in Durbar Marg, Kathmandu, as part of its CSR activities.

In the field of science and technology, Nabil Bank, in partnership with NAST, annually awards the Nabil Science and Technology Prize of NPR 500,000 for innovative talents with immediate application potential and positive humanitarian impact. During the 2015 earthquake, the bank donated NPR 20.1 million to the Prime Minister’s Relief Fund and provided food, clothing, and other essentials to earthquake victims in Sindhupalchowk. The bank also contributed to the beautification of Kathmandu Metropolitan City by establishing and maintaining an environmentally friendly modern flower tower.

Currently, Upendra Prasad Paudel serves as the chairman of Nabil Bank, with a five-member board of directors. The CEO is Gyanendra Prasad Dhungana, and the Deputy CEO is Manoj Kumar Gyawali. The bank operates three subsidiary companies: Nabil Retirement Fund, Nabil Stock Dealer Limited, and Nabil Investment Banking. It has regional heads in all seven provinces and provides banking services to over 2.2 million customers through 268 branches, 22 extension counters, and 317 ATMs across the country, cooperating with 200 international banks.

The bank offers interest rates on savings accounts ranging from 3.15% to 5.15%, while the interest rate for remittance savings is 6.15%. Loan interest rates are based on the base rate. Fixed deposit interest rates are 8% for terms above five years and up to 6.75% for one year. Nabil Bank claims to have the highest number of customers for education loans.

Deputy CEO Manoj Kumar Gyawali states that if the owners allow professional management, any institution can achieve business growth. Nabil Bank has succeeded from the beginning by adhering to a compliance culture, thus reaching its current position.

Gyawali claims that Nabil Bank is always ahead in digitalization, making it the preferred choice for everyone. He explains that the bank’s focus on digitalization, especially through the N-Bank concept, has provided customers with many conveniences, enhancing their banking experience. He believes that as the bank continues to focus on sustainability and customer-friendly services, customer attraction towards the bank will grow.

Gyawali also mentions that the strength of Nabil Bank differentiates it from others, allowing it to advance and be highly competitive. He notes that for Nepal to overcome the economic downturn, the government must be stable. If political agendas overshadow economic ones, the economic situation worsens. Stability in the government and other factors could help recover the economy within 5-6 months; otherwise, the situation could deteriorate further.