Commercial Banks Aggressively Expanding in Share and Other Investments, NIMB Leads

Kathmandu – Nepal’s commercial banks have significantly ramped up their investments in shares and other financial instruments, with NIMB Bank emerging as the top performer. According to the latest data from Nepal Rastra Bank, NIMB Bank has made the highest total investment of NPR 45.59 billion, positioning itself as the market leader. Out of this, a massive NPR 34.15 billion has been allocated under the Non-Resident investment category, while NPR 11.44 billion falls under the Others category.

NABIL Bank follows with a total investment of NPR 33.77 billion, including NPR 25.84 billion in non-resident investments. Meanwhile, Global IME Bank stands out with a total of NPR 35.94 billion in investments, comprising NPR 26.91 billion in non-resident funds and NPR 7.59 billion under the others category. The data indicates increasing foreign investor interest in top-tier banks like NIMB, NABIL, and Global.

Looking into the investment structure, a notable observation is the minimal participation in Interbank Lending. Only Global IME Bank (NPR 143.4 million) and NMB Bank (NPR 259.2 million) have made allocations in this segment, while the rest of the banks have reported zero investments.

Under the Others category, Agricultural Development Bank (ADBNL) has shown a significant commitment, with NPR 22.75 billion, accounting for its entire share and other investments. This reflects the bank’s focus on diversification. Other banks with moderate investment levels include Sanima, Prime, Citizen, Laxmi, and Prabhu Bank.

Overall, the trend highlights a sharp increase in non-resident investments across the banking sector. Experts interpret this as a sign of growing confidence from foreign investors, coupled with a strategic move by banks to diversify their portfolios. The aggressive expansion in share and alternative investments is expected to intensify competition and drive market dynamics in the coming quarters.