MUKTINATH BIKAS BANK LIMITED NEPAL THE LEADER IN DEVELOPMENT BANKING AND RETAIL EMPOWERMENT

30th December 2025, Kathmandu

In the landscape of the Nepalese financial sector, Muktinath Bikas Bank Limited stands as a unique institution that has successfully bridged the gap between high-level commercial banking and grassroots development financing. Established on January 3, 2007, as a regional development bank, it began its journey with a humble team of 13 staff members in the Gandaki Province.

MUKTINATH BANK BANKING LEADER

Over nearly two decades, it has evolved into a national-level Class B development bank with its headquarters in Kathmandu. Today, it is recognized as a pioneer in inclusive banking, guided by the powerful philosophy that the bank should go to the doors of the people rather than the people coming to the bank. As of late 2025, Muktinath Bikas Bank has solidified its reputation as the top development bank in Nepal, consistently delivering impressive financial results and social impact.

HISTORICAL EVOLUTION AND STRATEGIC VISION

The origin of Muktinath Bikas Bank is rooted in the vision of local intellectuals and businessmen from Syangja, Kaski, and Tanahun districts. Under the leadership of the late founding chairman Khagendra Raj Regmi and founding CEO Bharat Raj Dhakal, the bank was created to serve the unbanked populations of rural Nepal. The bank transitioned to a ten-district operation in 2012 and achieved national level status in 2015.

The bank’s current vision is to fulfill all banking needs of common individuals and businesses. This is supported by its mission to provide inclusive, customized banking for personal goals while delivering tailored financial solutions to micro, small, and medium enterprises. These objectives are grounded in the bank’s core values of sincerity, enthusiasm, reverence for compliance, and excellence.

FINANCIAL PERFORMANCE SNAPSHOT 2025

As of the fourth quarter of the fiscal year 2081/82 and heading into 2082/83, Muktinath Bikas Bank has demonstrated remarkable financial resilience. Despite a broader economic environment that has challenged many financial institutions, the bank has maintained solid profitability.

Key financial indicators as of late 2025 include: Total Assets: Over 136 billion Nepalese Rupees, Loans Outstanding: More than 718 million Nepalese Rupees across 65,000 customers, Paid-up Capital: 7.05 billion Nepalese Rupees Net Profit: Consistently exceeding the 1 billion Rupee mark annually since 202,1 Book Value per Share: Reported at approximately 169.95 Nepalese Rupees

In the fourth quarter of fiscal year 2081/82, the bank reported a gross profit margin of over 41 percent, reflecting highly efficient operational management. Although the non-performing loan or NPL ratio saw a slight increase to 2.75 percent, the bank remains well protected with a loan loss provision to NPL ratio of 120.58 percent. Furthermore, the bank’s earnings per share or EPS stood strong at 20.38, signaling attractive returns for its shareholders.

NETWORK AND NATIONWIDE REACH

Muktinath Bikas Bank operates one of the most extensive development banking networks in Nepal. With 179 branch outlets and a workforce of over 1,500 dedicated professionals, the bank serves more than 1.4 million customers. Its presence is particularly strong in semi-urban and rural areas where access to formal banking was historically limited.

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By integrating digital services with this vast physical network, the bank has made banking simpler and more accessible for the common populace.

A LEADER IN INCLUSIVE AND IMPACT BANKING

The bank’s strategic orientation is heavily focused on impact banking. It has developed an extensive partnership ecosystem with international organizations such as UKAid, KfW Development Bank, and the International Fund for Agricultural Development. These collaborations allow the bank to provide climate-smart finance, support agriculture value chains, and offer construction finance for MSMEs.

The Inclusive Banking model of Muktinath is divided into three main areas: Small and Inclusive Banking, focusing on loans up to 5 million Nepalese Rupees for small businesses, accompanied by financial literacy and counseling. Micro Banking: Providing loans from as low as 1,000 Rupees to poor and underprivileged households, often using group-based lending models without traditional collateral. Agriculture Value Chain (ACVC) Banking: Tailoring products for the entire agricultural cycle, from producers and cooperatives to processors and distributors.

CORPORATE SOCIAL RESPONSIBILITY AND CLIENT PROTECTION

For Muktinath Bikas Bank, social responsibility is not just a regulatory requirement but a core identity. The bank operates several social security schemes, including maternity support and calamity relief for victims of floods and landslides. It also offers livestock insurance, providing 80 percent compensation on insured animals, which is a vital safety net for rural farmers.

In mid 2025, the bank was recognized as the Best Managed Development Bank of the Year at the New Business Age awards. This accolade highlights the bank’s commitment to high ethical standards and its success in managing growth while maintaining a focus on public welfare. The bank’s CSR fund utilization is spread across all provinces, targeting education, health, and environmental conservation.

SUBSIDIARIES AND THE LARGER ECOSYSTEM

The bank’s ambition to be a holistic financial service provider is supported by its subsidiaries and associate companies. Muktinath Capital Limited provides expert investment and merchant banking services. Additionally, the bank played a major role in establishing the Muktinath Krishi Company, the first public agriculture company in Nepal. This ecosystem allows the bank to provide not just credit, but also market access, technology, and high-quality inputs to agricultural entrepreneurs.

CHALLENGES AND THE WAY FORWARD

While the bank is a leader in its class, it faces challenges from high liquidity pressures and the rising cost of digital transformation. However, its low cost of funds, which decreased to 3.14 percent in late 2025, provides a competitive advantage. Moving forward, the bank plans to further embrace digital banking in every service area while continuing its aggressive expansion into unbanked regions.

CONCLUSION

Muktinath Bikas Bank Limited represents the perfect marriage of commercial success and social purpose. From its humble beginnings in Syangja to its current status as Nepal’s premier development bank, it has remained true to its founding philosophy of serving the people. With a robust capital structure, deep rural penetration, and a visionary management team, the bank is well-positioned to continue fostering prosperity across Nepal. It remains the connective tissue of the nation’s economy, ensuring that growth is inclusive, sustainable, and reaches every door.

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