Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Banks across Nepal are rapidly merging branch offices as digital banking gains momentum and the need for physical visits declines. According to recent announcements, nine commercial banks will merge a total of 137 branches, following regulatory flexibility introduced by Nepal Rastra Bank in its first quarterly review of the monetary policy for FY 2082/83.
The central bank allowed commercial banks in metropolitan areas to consolidate nearby branches, citing rising digital transactions, increased use of deposit machines, and declining in-branch customer activity.
Bankers say the move reflects changing customer behavior, with many services now available online, reducing the necessity of maintaining closely located physical branches.
Among the banks, NIC Asia Bank is leading the consolidation with 44 branches being merged across six metropolitan cities, including Kathmandu, Lalitpur, Pokhara, Biratnagar, Birgunj, and Bharatpur. The bank said the move could significantly reduce operational costs while maintaining uninterrupted services through nearby branches.
Kumari Bank is merging 24 branches, followed by Nepal Investment Mega Bank with 18, Prabhu Bank with 14, Himalayan Bank and Global IME Bank with 8 each, Nabil Bank and Prime Bank with 7 each, and NMB Bank with 4 branches.
Bank executives say digital banking platforms, mobile apps, and deposit machines have drastically reduced foot traffic in physical branches.
According to NIC Asia Bank CEO Sujit Shakya, some branches that previously handled around 400 transactions daily now process less than half that number. He added that branch consolidation in metropolitan areas alone could save the bank up to Rs 180–200 million annually in rental and operational expenses.
“Customers no longer need to visit branches frequently. Services like account statements, cheque books, and account operations are now available online,” he said.
Banks indicate that the current phase of mergers is focused on metropolitan areas, but similar consolidation may expand to sub-metropolitan and municipal levels if approved by the central bank.
The move marks a significant shift in Nepal’s banking landscape, as institutions adapt to a more digital, cost-efficient operating model while maintaining service accessibility through remaining branches.
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