Top 5 Nepali Banks with Lowest NPL Ratios in 2025

Based on NRB’s Key Financial Indicators (Asadh end, 2082 / Mid-July 2025), the top 5 Nepali banks with the lowest Non-Performing Loan (NPL) ratios present a strong picture of financial discipline and risk management. At the top, Everest Bank Limited (0.38%) leads the entire industry with an exceptionally low NPL, reflecting its conservative lending model and foreign partner support. Close behind, the Agriculture Development Bank (0.42%) – a government-owned institution – has also achieved remarkable results, especially considering its exposure to rural and agricultural lending, traditionally seen as high-risk. Nepal Bank Limited (0.79%) and Rastriya Banijya Bank (0.88%) both managed to keep their NPLs under 1%, a rare achievement among state-owned giants, showing progress in loan monitoring and recovery systems. Finally, Standard Chartered Bank Nepal (1.47%) stands out in the private sector, where strict international compliance and robust credit appraisal systems keep its bad loans under control.

This performance is significant in a sector where the average NPL ratio is 3.66%, and many banks, particularly aggressive private ones, are struggling with higher ratios above 6–7%. The fact that three of the top five banks are government-owned challenges the perception that state banks always lag behind in efficiency. For depositors, these banks provide relatively safer havens, as lower NPLs imply better credit quality and reduced risk of losses. For investors, banks with low NPLs also mean fewer provisions eating into profits, supporting stronger returns and dividend prospects.