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#NepalBanking #ProductiveSecto
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By Sandeep Chaudhary

Top Banks Supporting Productive Sectors of Nepal’s Economy

Top Banks Supporting Productive Sectors of Nepal’s Economy

Nepal Rastra Bank has long emphasized the importance of channeling credit into productive sectors like agriculture, energy, and micro, cottage & small-medium enterprises (MCSME) to strengthen sustainable growth. The latest data (Asadh end 2082) reveals interesting trends in how banks are performing in this mandate.

State-owned banks continue to play a dominant role. Agriculture Development Bank (59.55%) has the highest total prescribed sector lending, reflecting its developmental orientation and historic mandate to support agriculture and small enterprises. Similarly, Nepal Bank (36.97%) and Rastriya Banijya Bank (36.46%) show strong allocation towards priority sectors, though not as aggressive as ADBL. These three institutions remain the backbone of productive sector financing.

Among private banks, NIC Asia (30.85%), Nabil (31.65%), and Nepal Investment Mega (30.70%) stand out, allocating nearly one-third of their loans to productive sectors. Other notable performers include Prabhu Bank (31.27%), NMB (31.95%), and Prime Commercial (31.76%), all comfortably exceeding the 25%+ level, showing their willingness to diversify lending portfolios beyond traditional retail and corporate loans.

On the lower end, some banks display weaker engagement. For instance, Laxmi Sunrise (29.65%), Everest (30.87%), and Sanima (32.95%) are close to the threshold but relatively less aggressive compared to leaders. While they meet NRB requirements, they lag behind peers in contributing to agriculture, energy, and SME sectors.

This overall distribution highlights that both state-owned and leading private banks are carrying the momentum in productive sector financing, but gaps remain with certain banks still prioritizing safer, short-term lending. For policymakers, this signals the need for continued monitoring, while for investors it shows which banks are aligning with Nepal’s long-term economic transformation goals.

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