Financial Access: Number of BFIs Stable, Branches Slightly Decline

Kathmandu — According to data published by Nepal Rastra Bank, the total number of licensed banks and financial institutions (BFIs) stood at 107 as of the end of FY 2082 Ashad. This includes 20 commercial banks, 17 development banks, 17 finance companies, 52 microfinance institutions, and 1 infrastructure development bank.

However, the number of branches has seen a slight decline. While there were 11,530 branches at the end of FY 2081 Ashad, the figure dropped to 11,526 branches by the end of FY 2082 Ashad. Among them, commercial banks had 5,099 branches, development banks 1,132, finance companies 291, and microfinance institutions 5,004.

Population per branch, which was 2,529 in FY 2081, slightly increased to 2,530 in FY 2082. This indicates that expanding financial access, particularly in rural and remote areas, remains a challenge.

Analysts note that while the overall number of institutions has remained stable, the small decline in branch numbers could impact rural financial inclusion. Nepal Rastra Bank, however, expects that digital banking and technology-driven services will help compensate for the reduction in physical branches.