Rastriya Banijya Bank Limited

Rastriya Banijya Bank Limited (राष्ट्रिय वाणिज्य बैंक लिमिटेड)

Rastriya Banijya Bank Limited (RBB) is Nepal’s second commercial bank, established on Magh 10, 2022 B.S., under full ownership of the Government of Nepal. The bank has been operating as a pioneer in Nepal’s banking system by promoting banking habits among the general public, expanding access to financial services, supporting national capital formation, and acting as a financial intermediary to help develop industries and businesses for the country’s economic progress.

The bank was originally established under the then Rastriya Banijya Bank Act, 2021. With subsequent changes in the legal framework related to banks, the bank was converted into a public company on Baisakh 6, 2063 B.S., in accordance with the Commercial Bank Act, 2031 and the Company Act, 2063. Under the Banks and Financial Institutions Act, 2073, the bank obtained a Class “A” license from Nepal Rastra Bank and has been carrying out banking transactions as a financial institution. Over its six-decade history, the bank has continued moving forward through various phases of progress and challenges.

By expanding modern banking services, supporting the implementation of government policies and programs, and ensuring continuity of banking services even during natural and other disasters, the bank has remained active as a competitive institution in Nepal’s banking sector. Following the implementation of the Financial Sector Reform Program in 2058 B.S., the bank improved significantly across major indicators and has continued strengthening its performance.

Based on the concept that Government of Nepal ownership represents the ownership of Nepali people, the bank has adopted the slogan “Your Own Bank.” With a commitment to providing Nepali citizens with simple, accessible, reliable, modern, and technology-enabled financial services, the bank successfully implemented its Strategic Plan (2020–2024) and is now in the final stage of formulating its Strategic Plan (2025–2030). To keep its operations timely, customer-friendly, and technology-driven, the bank follows the vision, mission, and core values outlined below.

Vision

A bank that always contributes to national prosperity and is the most reliable bank for all.

Mission

“We are always committed to improving the living standards of all Nepali people by ensuring safe, innovative, and accessible financial services through the removal of barriers to financial access, a broad and capable service network, socially responsible business processes, and compassionate human resources.”

Core Values

• Respect for people and their communities

• Effectiveness and efficiency across all business processes

• Maximum utilization of all types of resources

• Responsible and accountable service delivery

• Integrity, commitment, and reliability in every task

A Success-Oriented Government-Owned Bank

As of the end of Ashadh 2082, the bank’s authorized share capital is Rs. 30 billion, and its issued and paid-up share capital is Rs. 15,63,73,77,055. Under the current capital structure, the Government of Nepal holds 99.97 percent ownership, and the general public holds 0.03 percent ownership.

With the growth of funds through profit distribution achieved from business expansion and revaluation of assets, the bank’s capital fund reached Rs. 54.29 billion by the end of Ashadh 2082.

A Foundation of Public Trust

The volume of deposits reflects the trust depositors place in the bank. By the end of Poush of Fiscal Year 2082/83, the bank collected deposits totaling Rs. 550 billion from more than 4.7 million depositors, including both individual and institutional customers.

To provide financial services to every segment of society—from ordinary citizens to entrepreneurs—the bank has been delivering attractive and advanced banking services through a nationwide branch network using both physical and digital channels, targeting various groups, professions, businesses, and genders.

Diversification in Credit Expansion

In line with the policies and programs of the Government of Nepal, the bank has been providing capital to support development and promotion in key sectors such as agriculture, hydropower, tourism, health, and education.

It has also contributed to increasing domestic production and job creation through small and medium enterprise loans, commercial agriculture and livestock loans, various concessional loans, priority sector loans (including hotel, tourism, and energy), commercial/project loans, and consumer loan schemes.

By the end of Poush 2082, the bank invested Rs. 330 billion in loans to more than 200,000 customers.

Continuity in Profitability

Annual profits reflect the bank’s operational and managerial efficiency. Since the implementation of the financial reform program, the bank has successfully maintained continuous profitability from Fiscal Year 2060/61 onward.

Continuing this performance, the bank earned a net profit of Rs. 2.83 billion in Fiscal Year 2081/82. The bank has maintained notable profitability in Nepal’s banking sector since Fiscal Year 2075/76.

A Key Partner of the Government of Nepal in Government Transactions

Among the federal government’s total 81 Treasury and Controller of Accounts Offices, 50 conduct all expenditure payments and government transactions through this bank. Similarly, among 77 provincial government offices, 51 use this bank, and among 753 local levels, 128 conduct their entire expenditure payments and government transactions through the bank.

The bank also plays a significant role in government revenue collection through its branches and extension counters, as well as across its branch network. Overall, more than half of Nepal’s total government transactions are conducted through this bank.

The bank also handles pension payments for more than 160,000 retired individuals, including civil servants, army personnel, police, and teachers, and holds more than a 60 percent share of total pension payments. In addition, the bank has been upgrading its banking system in line with the Government of Nepal’s plan to expand technology-friendly transaction systems.

Most transactions related to the payment of social security allowances distributed by the Government of Nepal are also conducted through this bank.

Contribution to Government Revenue

From the profits earned, the bank pays income tax to the Government of Nepal as per prevailing laws, and contributes significantly to government revenue collection through interest tax and tax deductions at source, among other measures.

As income tax, the bank deposited Rs. 1.06 billion in Fiscal Year 2081/82, Rs. 1.75 billion in Fiscal Year 2080/81, and Rs. 2.18 billion in Fiscal Year 2079/80 to the Government of Nepal.

Nationwide Branch Network

The bank has been delivering modern banking services through 313 branch offices (including district headquarters across all 77 districts in all seven provinces), 322 ATMs, 64 extension counters, and 95 branchless banking units.

In line with the federal structure, customer service has been made faster and more effective through provincial offices in all seven provinces. Based on a policy of branch expansion driven by business feasibility, the bank has set a target to increase the number of branches to 330 by the end of the current fiscal year.

With continued support and trust from customers, all levels of government, regulatory bodies, and the general public, the bank has been operating as a leading commercial bank with a large branch network.

Contribution to Employment Creation

The bank directly provides employment to around 3,000 people. Since its establishment, it has also created large-scale employment by meeting its required workforce needs over time.

Through the loans it has extended, the bank has contributed positively to poverty reduction by supporting national production growth and increased economic activity, which in turn has created indirect employment. The bank has been supporting borrowers and their families in becoming self-employed through micro, small, agriculture, and concessional lending.

Achievements in Digital Transactions

For a long period after its establishment, the bank maintained accounts through a handwritten ledger system. From 2060 B.S., it began automating transactions through a computerized system using RBB-SYS. The bank is currently in the process of upgrading its transaction system by implementing an IT Enhancement Roadmap to enhance the overall standard of its operations.

The bank has prioritized the expansion of technology-based services such as ATM, Debit Card, Credit Card, Any Branch Banking Service (ABBS), Mobile Banking, Internet Banking, Branchless Banking, Point of Sales (PoS), and Quick Response (QR) Code services. It has also been increasing investment in a planned manner to upgrade its existing technical infrastructure.

For Fiscal Years 2079/80, 2080/81, and 2081/82, the bank has been receiving recognition from Nepal Clearing House for conducting the highest volume of digital transactions among banks and financial institutions (including government transactions).

Effective Institutional Corporate Social Responsibility

While fulfilling its broader responsibility to society, the bank has been providing notable financial support and cooperation in areas such as assistance to victims of natural and other disasters, promotion and protection of cultural, historical, social, and environmental heritage, financial literacy programs, distribution of educational materials to schools to enhance educational standards, blood donation programs, health camps, collaboration in the management of social institutions/parks, and other social activities in coordination with local levels, clubs, and social organizations.

Key Financial Indicators Including Financial Achievements in the Last 5 Years

(Fiscal Year / Amount in Rs. Crore)

1) Paid-Up Share Capital

• 2077/078: 918.49

• 2078/079: 1,146.04

• 2079/080: 1,563.74

• 2080/081: 1,563.74

• 2081/082: 1,563.74

2) Retained Earnings

• 2077/078: 345.38

• 2078/079: 185.29

• 2079/080: 91.84

• 2080/081: (122.21)

• 2081/082: (85)

3) Reserve Fund

• 2077/078: 1,503.56

• 2078/079: 1,382.08

• 2079/080: 3,418.25

• 2080/081: 3,582.20

• 2081/082: 3,739

4) Deposit Liabilities

• 2077/078: 26,363.68

• 2078/079: 25,814.43

• 2079/080: 32,165.49

• 2080/081: 42,918.77

• 2081/082: 50,041

5) Loans and Advances

• 2077/078: 19,330.51

• 2078/079: 22,671.75

• 2079/080: 24,294.20

• 2080/081: 25,754.46

• 2081/082: 29,234

6) Net Interest Income

• 2077/078: 820.94

• 2078/079: 929.59

• 2079/080: 1,181.62

• 2080/081: 1,003.02

• 2081/082: 1,015

7) Operating Income

• 2077/078: 900.05

• 2078/079: 1,063.17

• 2079/080: 1,065.98

• 2080/081: 1,039.83

• 2081/082: 1,070

8) Net Profit

• 2077/078: 342.36

• 2078/079: 429.28

• 2079/080: 359.51

• 2080/081: 255.24

• 2081/082: 284

9) Capital Adequacy Ratio (%)

• 2077/078: 13.46

• 2078/079: 13.29

• 2079/080: 12.92

• 2080/081: 11.11

• 2081/082: 11.36

10) Net Worth (Rs. per Share)

• 2077/078: 312.19

• 2078/079: 227.25

• 2079/080: 218.73

• 2080/081: 321.26

• 2081/082: 334

11) Non-Performing Loan (%)

• 2077/078: 3.23

• 2078/079: 2.09

• 2079/080: 3.77

• 2080/081: 4.28

• 2081/082: 3.79

12) Dividend Percentage (Cash and Bonus Shares)

• 2077/078: 33.00

• 2078/079: 12.50

• 2079/080: 5.50

• 2080/081: 00

• 2081/082: 00

Future Work Plan

To remain competitive in the financial market, the bank is moving forward with plans to expand its capital base and business capacity, improve the quality of banking services, formulate necessary policies and regulations, strengthen information technology systems in a timely manner, manage banking and non-banking assets effectively, expand financial access through both digital and physical channels, build simplified work processes, enhance employee performance, increase the bank’s share in remittance transactions, and provide simple, transparent, competitive, and customer-friendly banking services by fully complying with the policies and regulations of the Government of Nepal and regulatory bodies.