NIC Asia Bank Strengthens Recovery with Capital and Digital Reforms

NIC Asia Bank, one of Nepal’s leading Class A commercial banks, has entered a strong recovery phase after facing financial and operational challenges in recent years. Following an aggressive expansion strategy in the past, the bank is now focusing on consolidation, improving asset quality, strengthening capital, and enhancing digital services. Key measures include changes in top management, branch downsizing, accelerated digitization, and a proposal to issue right shares. Early indicators suggest that these efforts are yielding positive results.

According to Chief Information Officer Jayendra Rawal, the bank has adopted a defensive and sustainable growth strategy amid the country’s economic slowdown. The new approach prioritizes loan restructuring and recovery, gradual business expansion, portfolio diversification, and full-scale digital transformation. The bank has significantly increased its investments in corporate and energy sectors, strengthening its long-term income sources.

To further consolidate its capital base, the bank has proposed issuing 50 percent right shares in a 2:1 ratio, aiming to raise Rs 7.45 billion through 74.58 million units. Upon completion, the paid-up capital will rise from Rs 14.91 billion to Rs 22.37 billion, subject to approval from Nepal Rastra Bank. In addition, the bank plans to issue perpetual non-cumulative preference shares worth Rs 5 billion to manage capital pressure and support future lending.

Established in 2013 through the historic merger of NIC Bank and Bank of Asia Nepal, NIC Asia once set benchmarks in Nepal’s banking sector. It was recognized as “Bank of the Year Nepal” by The Banker in 2007 and 2013. At its peak, the bank operated more than 350 branches, over 470 ATMs, and served more than 3 million customers. Despite challenges caused by economic slowdown and post-Covid loan recovery issues, the bank has remained stable.

As per its Q2 FY 2082/83 financial report, total loans reached Rs 223.98 billion, deposits increased to Rs 333.78 billion, and reserves rose to Rs 22.06 billion. The net worth per share stands at Rs 198.33. Currently, the bank serves nearly 4 million customers and is steadily reclaiming its strong market position through disciplined management and strategic reforms.