Which Banks Have the Highest Capital Adequacy Ratio (CAR) in Nepal?

As per Nepal Rastra Bank’s provisional indicators for Asadh end 2082 (mid-July 2025), Nepal’s commercial banking sector maintains an overall Capital Adequacy Ratio (CAR) of 12.78% and a Core Capital Adequacy Ratio (CCAR) of 10.03%, both above the minimum regulatory threshold. This shows that the sector is broadly well-capitalized, though with significant differences across banks. At the top, Standard Chartered Bank Nepal Limited stands out with the strongest capital buffer at 17.82%, well above the industry average, reflecting its conservative lending approach and high-quality asset portfolio. Close behind are Prabhu Bank Limited (13.90%), Nepal Investment Mega Bank Limited (13.73%), NIC Asia Bank Limited (13.42%), and Agriculture Development Bank Limited (13.36%), each comfortably maintaining strong solvency levels. These banks not only meet regulatory requirements but also provide additional cushions against credit shocks.

Mid-range performers such as Nabil Bank (11.94%), Global IME Bank (12.97%), and NMB Bank (12.03%) sit around the sectoral average, striking a balance between aggressive lending and maintaining capital reserves. State-owned giants—Nepal Bank Limited (13.06%) and Rastriya Banijya Bank (11.84%)—continue to provide systemic stability, though their efficiency and profitability lag slightly compared to dynamic private banks. On the other hand, banks like Himalayan Bank (11.16%) and Siddhartha Bank (11.77%) are closer to the minimum range, highlighting thinner margins of safety.

The sector’s aggregate deposit base reached Rs. 6.54 trillion, while total loans stood at Rs. 4.96 trillion, leading to a CD ratio of 76.63%. Liquidity indicators remain stable overall, though some banks like Citizens Bank (84.45%) and NMB (84.31%) show higher CD ratios, indicating more aggressive lending practices. Meanwhile, profitability pressures are evident, with spread rates narrowing to 3.66% and non-performing loans (NPLs) rising to an average of 4.44%, though banks such as Everest Bank demonstrate exceptional asset quality with only 0.38% NPLs.