Banking sector tightens grip on NEPSE as Nabil Bank remains most valuable listed firm

KATHMANDU: The banking sector continues to dominate Nepal’s stock market and reinforcing its role as the backbone of the Nepal Stock Exchange (NEPSE). As of January 8, 2026, the top 10 commercial banks account majority of the NEPSE’s total market capitalization, underlining how closely the stock market’s direction is tied to the performance of banks.

Nabil Bank has retained its position as the most valuable listed bank in Nepal. Its market capitalization has crossed NPR 132 billion, equivalent to around USD 918 million. The valuation places Nabil far ahead of its peers and confirms its long-standing leadership in Nepal’s financial sector.

Everest Bank stands in second place with a market capitalization of NPR 90.69 billion. Global IME Bank follows closely in third, valued at NPR 86.90 billion. Other banks in the top 10 include Nepal Investment Mega Bank, Standard Chartered Bank Nepal, Siddhartha Bank, and several other large commercial lenders that have shaped NEPSE’s structure for years.

Market capitalization is calculated by multiplying a company’s total outstanding shares by its current share price. In simple terms it shows how much the market believes a company is worth. In Nepal’s case this measure highlights the overwhelming influence of banks compared to other areas such as hydropower, insurance, hotels, or manufacturing and processing.

NEPSE is heavily weighted toward financial institutions, the movement of bank shares often decides whether the overall index rises or falls on a given trading day. When large banks gain, the index usually moves up. When they fall, the market often follows. This structure makes banking stocks especially important for traders, fund managers, and long-term investors.

For many retail investors, large commercial banks are seen as relatively safer investments. These institutions are well-established and operate under strict regulatory oversight. Most of them have a long history of paying dividends, either in cash or bonus shares. This has made banking stocks popular among investors seeking stable returns rather than short-term speculation.

The strong market capitalization of banks also reflects their wider role in the national economy. Banks are the main channel for mobilizing savings and directing credit into productive sectors. Large banks with strong capital bases are better positioned to finance big projects, including hydropower plants, transmission lines, roads, and urban infrastructure.

Investor confidence in banking stocks is also linked to trust in Nepal’s financial system. Remittances remain a major pillar of the economy, and commercial banks handle a large share of these inflows. A strong banking sector helps absorb these funds and convert them into loans and investments that support economic activity.

At a time when the World Bank has projected Nepal’s GDP growth to slow to around 2.1 percent in FY26, mainly due to political instability, the steady performance of major banks is being closely watched. Their balance sheets, profitability, and stock prices are increasingly seen as early signals of whether the economy can regain momentum.

With banking stocks continuing to dominate trading, valuation, and investor attention, the sector remains the single most influential force shaping the present and near-term future of Nepal’s stock market.