Citizens Bank International Limited Nepal: Growth, Resilience, and Financial Innovation
23rd December 2025, Kathmandu
In the competitive landscape of the Nepalese financial sector, Citizens Bank International Limited has carved out a unique identity as an institution that blends traditional banking values with cutting edge technological progress. Since its inception in 2007, the bank has consistently pushed the boundaries of what it means to be a customer centric commercial bank.
Citizens Bank Financial Innovation
As we navigate the complexities of the 2025 financial year, Citizens Bank stands at a critical juncture, celebrating prestigious global accolades while simultaneously navigating significant structural and economic challenges. This article provides an in depth analysis of the bank’s journey, exploring its historical roots, recent financial breakthroughs, innovative digital strategies, and the hurdles it must overcome to maintain its position as a leader in the region.
A LEGACY OF SERVICE AND STRATEGIC VISION
Citizens Bank International Limited began its operations on April 20, 2007, as the 20th commercial bank to be licensed in Nepal. From its headquarters on Narayanhiti Path in Kathmandu, the bank was launched with the mission to be a trustworthy partner in the financial progress of individuals and institutions. Unlike some of its older counterparts, Citizens Bank was born in an era of rapid globalization, which allowed it to adopt modern banking practices and governance standards from day one.
The bank operates under a Class A license from Nepal Rastra Bank and is a publicly traded company on the Nepal Stock Exchange under the ticker CTZN. Its vision is centered on service excellence, aiming to be recognized not just within Nepal but throughout the South Asian region. To achieve this, the bank adheres to five core values: Customer Focus, Service Excellence, Human Resource Development, Corporate Governance, and Social Responsibility. These principles have guided the bank through nearly two decades of growth, helping it expand from a single office to a massive nationwide network.
NATIONWIDE REACH AND THE PHYGITAL REVOLUTION
One of the most impressive aspects of Citizens Bank is its physical outreach. In 2025, the bank operates a network of 200 branches, supported by 169 ATMs and 42 branchless banking units across 61 districts of Nepal. This geographic diversity is essential in a country like Nepal, where many rural populations still rely on physical branches for their banking needs.
However, the bank has successfully transitioned into what experts call a phygital model. This strategy integrates physical infrastructure with a robust digital ecosystem. By maintaining a strong local presence while simultaneously offering advanced mobile and internet banking services, Citizens Bank ensures that it can serve everyone from a small scale farmer in a remote village to a tech savvy entrepreneur in the capital. This dual approach has allowed the bank to amass a customer base of nearly 2 million people, reflecting deep seated public trust.
FINANCIAL SNAPSHOT ANALYSIS OF RECENT PERFORMANCE
The financial year 2024/25 and the start of 2082 BS in the Nepali calendar have been a period of significant scaling for Citizens Bank. According to the first quarter results for the current fiscal year, the bank’s total assets reached 246.35 billion Nepalese Rupees. This represents a steady growth in the bank’s overall balance sheet. Customer deposits have surged to 215.22 billion Nepalese Rupees, held across approximately 1.95 million accounts.
On the lending side, the bank has been active in supporting various sectors of the economy, with loans and advances totaling 176.08 billion Nepalese Rupees. However, the bank has faced some short term profitability pressures. In the most recent unaudited quarterly reports, the bank noted a net profit loss of 220.41 million Nepalese Rupees, leading to an annualized Earnings Per Share or EPS of 5.97. This temporary dip is largely attributed to increased credit costs and strategic investments in digital infrastructure.
Despite these recent pressures, the bank’s long term trend remains positive. In the previous fiscal year 2079/80, it reported a net profit of 2.21 billion Nepalese Rupees. For the 2081/82 period, the bank proposed a dividend of 5.263 percent, which included a 5 percent bonus share component, demonstrating a commitment to returning value to its shareholders even during periods of operational adjustment.
BANK OF THE YEAR 2024 AND 2025 A GLOBAL RECOGNITION
A major highlight in the recent history of Citizens Bank is its back to back victory in the Bank of the Year awards. In early December 2025, the bank was awarded the prestigious title of Bank of the Year 2025 by The Financial Times in London. This followed its previous win in 2024, making it one of the few banks in Nepal to receive this global recognition two years in a row.
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Chairman Prabal Jung Pandey and CEO Ganesh Raj Pokharel accepted the award, which is often referred to as the Oscars of Banking. The recognition was based on the bank’s ability to deliver modern, customer friendly, and sustainable banking services. It also highlighted the bank’s innovative spirit, particularly its introduction of several first in Nepal products that have set new standards for the industry.
DIGITAL INNOVATION NEPAL FIRST SOLUTIONS
Innovation is the engine driving Citizens Bank forward. In 2025, the bank introduced the Citizens FonePay Virtual Credit Card, the first of its kind in the country. This product allows users to enjoy the benefits of a credit card without needing a physical piece of plastic, facilitating secure and instant online transactions.
The bank has also launched specialized products like the Gen Z savings account and the Freelancer Savings Account, targeting the growing demographic of young digital workers. Its mobile banking app now features integrated services that allow users to apply for stocks and manage their CRN numbers directly from their phones. With over 30,000 active QR merchants, Citizens Bank is a major player in the drive toward a cashless society in Nepal.
ADDRESSING STRUGGLES AND BUILDING RESILIENCE
While the bank has much to celebrate, it is also facing real world struggles that require careful management. One of the primary concerns for 2025 has been asset quality. Reports from rating agencies like ICRA Nepal have noted that the bank’s Non Performing Loan or NPL ratio stood at approximately 4.85 percent by mid January 2025. This increase in bad loans is reflective of a broader stress in the Nepalese economy, but it remains a critical area where the bank must improve its monitoring and recovery processes.
The bank has also faced regulatory challenges. In mid 2025, Nepal Rastra Bank took administrative action against the bank for issues related to interest rate calculations and certain governance matters. These instances underscore the importance of maintaining strict compliance in an increasingly regulated environment. In response, the leadership team under CEO Ganesh Raj Pokharel has emphasized a renewed focus on internal audits, risk management frameworks, and transparency to ensure that the bank meets all central bank guidelines.
WORKFORCE DEVELOPMENT AND SOCIAL IMPACT
At the heart of Citizens Bank’s operations is its workforce. The bank places a massive emphasis on training, conducting over 60 training programs in a single quarter for more than 1,300 participants. Programs like the Inspiring Leadership and Performance seminars are held across all provinces to empower local managers and staff.
The bank’s commitment to society is equally strong. Through its Corporate Social Responsibility initiatives, it supports education for underprivileged children and conducts financial literacy campaigns across the country. During Global Money Week 2025, the bank reached thousands of students with the message of wise money management, helping to build a more financially literate future generation.
FUTURE TRAJECTORY
As Citizens Bank International Limited moves further into 2026 and beyond, its path is one of calculated growth and continued innovation. By leveraging its Bank of the Year status, the institution is well positioned to attract new investors and expand its corporate and infrastructure financing wings. Its role in leading the financing for major hydropower projects shows that it is ready to handle the big ticket items necessary for national development.
In conclusion, Citizens Bank represents a compelling story of resilience. It is a bank that is not afraid to innovate, even when faced with short term financial pressures or regulatory hurdles. With a robust digital strategy, an extensive branch network, and a globally recognized leadership team, Citizens Bank remains a vital pillar of the Nepalese economy. It continues to be a bank that truly lives up to its name, serving the citizens of Nepal with pride and professionalism.
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