While capital deployment spans across the country's banking system, the portfolio distribution reveals a heavy concentration among a select few institutions, with Nabil Bank and Kumari Bank emerging as the frontrunners.
In terms of absolute volume, Nabil Bank leads the industry with a total investment of Rs 53.53 billion, accounting for roughly 10.97% of its total loan portfolio.
However, Kumari Bank has captured the spotlight for portfolio concentration, boasting an energy loan portfolio of Rs 52.60 billion. Kumari’s energy sector exposure stands at 17.40% of its total loans—substantially higher than the industry average.
At the other end of the spectrum, NIC Asia Bank recorded the lowest exposure in the sector, with Rs 2.25 billion, or 1.07% of its total loans.
Complete Commercial Bank Energy Lending Breakdown
The table below details energy sector lending and total loan portfolios across all 20 commercial banks as of Ashad End 2083:
| S.No. |
Bank Name |
Energy Sector Loan (Rs. Billion) |
Total Loan (Rs. Billion) |
Share in Total Loans (%) |
| 1 |
Nabil Bank |
53.53 |
4,879.82 |
10.97% |
| 2 |
Kumari Bank |
52.60 |
3,023.86 |
17.40% |
| 3 |
Nepal Investment Mega Bank |
36.48 |
3,607.31 |
10.11% |
| 4 |
Laxmi Sunrise Bank |
34.12 |
3,210.14 |
10.63% |
| 5 |
Global IME Bank |
32.09 |
4,768.40 |
6.73% |
| 6 |
NMB Bank |
30.68 |
2,679.55 |
11.45% |
| 7 |
Sanima Bank |
30.45 |
2,065.22 |
14.74% |
| 8 |
Everest Bank |
27.67 |
2,476.57 |
11.17% |
| 9 |
Rastriya Banijya Bank |
27.40 |
3,467.19 |
7.90% |
| 10 |
Prime Commercial Bank |
26.87 |
2,445.97 |
10.99% |
| 11 |
Citizens Bank |
24.16 |
1,773.32 |
13.63% |
| 12 |
Siddhartha Bank |
22.39 |
2,481.25 |
9.02% |
| 13 |
Prabhu Bank |
19.88 |
2,321.90 |
8.56% |
| 14 |
Himalayan Bank |
18.25 |
2,565.84 |
7.11% |
| 15 |
Nepal Bank |
17.47 |
2,617.71 |
6.67% |
| 16 |
Machhapuchchhre Bank |
16.32 |
1,712.53 |
9.53% |
| 17 |
Agricultural Development Bank |
13.76 |
2,457.94 |
5.60% |
| 18 |
Nepal SBI Bank |
11.72 |
1,531.08 |
7.66% |
| 19 |
Standard Chartered Bank |
5.75 |
708.60 |
8.12% |
| 20 |
NIC Asia Bank |
2.25 |
2,111.28 |
1.07% |
| Total |
Industry Aggregate (20 Banks) |
503.85 |
52,905.48 |
9.52% |
Regulatory Pressures Ahead
The overall industry average energy sector exposure sits at 9.52%. Sector analysis indicates that 12 out of 20 commercial banks currently fall below this average, pointing to a concentration of capital among a minority of lenders.
To address this imbalance and fuel national infrastructure growth, Nepal Rastra Bank has mandated that all commercial banks allocate at least 10 percent of their total loan portfolios to the energy sector by Ashar 2085.
With the deadline approaching within the next two years, financial institutions currently lagging behind the regulatory threshold face growing pressure to accelerate their clean energy financing strategies.
