Nepali Commercial Banks' CD Ratios Remain Tight; Prime and NMB Banks Near Regulatory Limits

A fresh analysis of the Credit to Deposit (CD) ratios of major commercial banks in Nepal shows that several institutions are operating dangerously close to the regulatory ceiling, while a few still have breathing room.

Among the big three government-owned banks — Nepal Bank Limited, Rastriya Banijya Bank, and Agriculture Development Bank — the average CD ratio stood at 68.96%. This indicates they are relatively conservative in lending compared to private sector peers. Notably, Rastriya Banijya Bank reported the lowest CD ratio at 61.99%, suggesting it is sitting on significant liquidity.

In the private sector, however, the picture is much more aggressive.

NMB Bank Limited led the pack with a CD ratio of 86.76%, closely followed by Prime Commercial Bank Limited at 86.09%. Both banks are uncomfortably near the Nepal Rastra Bank’s regulatory limit of 90% (in many cases, banks tend to stay below 85% to avoid regulatory scrutiny).
Citizens Bank International Limited (83.79%), NIC Asia Bank Limited (83.57%), and Siddhartha Bank Limited(83.68%) also reported high ratios, signaling aggressive loan book expansion.

On the contrary, Standard Chartered Bank Nepal Limited remained the most cautious among private banks, with a CD ratio of just 67.61%, even lower than the industry sub-total of government banks. Similarly, Nepal SBI Bank Limitedreported a modest 72.04%.

Nabil Bank Limited, one of Nepal’s biggest private banks, reported a CD ratio of 82.80%, showing a balanced but assertive lending approach.

Meanwhile, Global IME Bank Limited, Himalayan Bank Limited, Laxmi Sunrise Bank Limited, and Sanima Bank Limited maintained their CD ratios between 78% and 80%, which is considered healthy under current market conditions.