Commercial Banks Invest Over NPR 14 Kharba in Securities, RBB and Global IME Lead the Sector

Kathmandu, June 2025 – Nepal’s commercial banks have collectively invested over NPR 14 kharba in various forms of securities by the end of Baisakh 2082 (mid-May 2025), reflecting a highly conservative and government-centric investment trend in the banking sector. According to the latest data from Nepal Rastra Bank (NRB), the investment portfolio remains heavily tilted toward government securities and NRB bonds, with minimal exposure to private or foreign institutions.

Rastriya Banijya Bank (RBB) leads the sector with the highest investment, totaling NPR 1.42 kharba. The majority of RBB’s allocation, around NPR 96.89 arba, is invested in government securities, while a significant portion, NPR 45.82 arba, is placed in NRB bonds. Close behind is Global IME Bank with a total investment of NPR 1.17 kharba, of which NPR 99.65 arba is in government securities and NPR 18 arba in NRB bonds. NMB Bank also shows a strong position, investing NPR 1.11 kharba, with a nearly equal split between government securities (NPR 69.17 arba) and NRB bonds (NPR 42.36 arba).

A clear pattern emerges across the industry—government securities are the preferred choice for almost all the 20 listed commercial banks. These instruments offer low-risk, interest-bearing returns, and align with the liquidity and regulatory requirements set by NRB. Other major players such as NABIL, NIC Asia, and Laxmi Sunrise Bank have also made significant allocations, primarily in government securities and, in some cases, NRB bonds.

Interestingly, Sanima Bank is the only institution with a reported investment in foreign securities. It has allocated NPR 7.55 crore to instruments held by non-residents, possibly indicating exposure to international bonds or market-linked securities. Meanwhile, NABIL Bank remains the sole investor in “Other Non-Financial Institutions,” with an amount of NPR 1.59 crore.

The data shows little to no investment by banks in government or private non-financial institutions, highlighting a cautious approach amid ongoing economic recovery and interest rate fluctuations. Most banks have maintained a narrow focus on safe, liquid government-backed assets to safeguard returns and manage liquidity efficiently.

Overall, the investment patterns suggest a banking sector that remains heavily reliant on sovereign instruments for portfolio management. The trend underscores a risk-averse posture, likely driven by market uncertainty, liquidity needs, and central bank directives. As the financial landscape evolves, it remains to be seen whether banks will diversify further into corporate bonds, infrastructure instruments, or foreign assets in the coming fiscal year.