9th October 2025, Kathmandu
The Government of Nepal has solidified its strategic engagement with the country’s oldest commercial bank, Nepal Bank Limited (NBL), by appointing Mahesh Bhattarai, a seasoned Joint Secretary at the Ministry of Finance, to its Board of Directors.
NBL Director Appointed
This move, officially confirmed on October 8, 2025 (Ashoj 22, 2082 BS), emphasizes the government’s commitment to effective governance, institutional accountability, and alignment of the public banking sector with national financial priorities.
Strategic Appointment and Formal Transition
Mahesh Bhattarai formally commenced his tenure as a Director after taking the oath of office and secrecy before the Chairperson of the NBL Board of Directors. He succeeds Than Prasad Pagnani as the official representative of the Ministry of Finance, ensuring continuity in the crucial nexus between government fiscal policy and the bank’s operational strategy. This practice of appointing senior government officials to the boards of state-owned financial institutions is a mechanism to safeguard public interests, promote institutional accountability, and maintain diversified oversight within the financial sector.
As a Joint Secretary, Bhattarai’s background encompasses significant expertise in fiscal policy, public finance management, and economic administration. His presence is expected to inject a high level of policy-making experience into NBL’s strategic discussions, which is particularly vital as the bank navigates a demanding and increasingly competitive banking landscape. The appointment underscores the hybrid nature of Nepal Bank Limited—a blend of commercial drive and public accountability—given that the Government of Nepal maintains a controlling stake in the institution.
Enhancing Governance and Policy Alignment
Bhattarai’s role will be instrumental in bridging the policy gap between the government’s financial sector mandates and the bank’s operations. His primary contributions are anticipated in several key areas:
Corporate Governance and Transparency: NBL is currently in a crucial phase of institutional development, focusing on enhancing corporate governance, improving risk management systems, and implementing transparency measures in line with directives from the Nepal Rastra Bank (NRB) and international standards like Basel III. The addition of a Ministry of Finance official is expected to reinforce these efforts by ensuring robust internal controls and disciplined adherence to regulatory frameworks.
Fiscal and Monetary Stability: His expertise in public finance will ensure that the bank’s lending and operational strategies remain synchronized with the national objectives of monetary stability, responsible banking practices, and effective public-sector banking. This alignment is critical, especially in the context of recent global and domestic economic fluctuations that require cohesive financial policy responses.
Strategic Decision-Making: By drawing on his comprehensive understanding of the national economic architecture, Bhattarai is poised to enhance the strategic decision-making capacity of the Board, particularly regarding capital adequacy frameworks, loan restructuring policies, and investments in modern infrastructure.
Nepal Bank Limited’s Strategic Phase of Growth
The appointment coincides with NBL’s push for major institutional reforms. Founded in 1937 AD (1994 BS), NBL holds a prominent historical position as Nepal’s first commercial bank, established to formalize financial services and support national development. Today, while maintaining a strong nationwide physical presence with numerous branches and ATMs, the bank is aggressively pursuing:
Digital Transformation: The bank’s mission centers on achieving a ‘Technology driven smart banking service.’ Recent initiatives have focused on expanding digital service delivery platforms, which include mobile banking, internet banking, and the adoption of modern payment systems like Connect IPS and electronic cheque clearing. This digital push is essential for improving customer service excellence and operational efficiency.
Financial Inclusion and Rural Outreach: Consistent with its historical role, NBL is utilizing its extensive network to expand financial access, particularly in rural and underserved areas, thereby promoting financial inclusion. This involves providing services like SME lending, agricultural finance, and remittance services across urban and rural parts of the country.
Sustainable and Ethical Growth: The bank’s stated objective is “Achieving secured and sustainable growth by delivering Robust, Ethical and Responsible (RER) banking service.” Bhattarai’s policy-driven perspective will be crucial in guiding the bank toward this objective, ensuring that commercial success is balanced with institutional stability and public welfare.
The Impact of Government Representation
The inclusion of government-nominated directors like Mahesh Bhattarai is more than a formality; it is a direct channel for communication and influence. It facilitates collaboration between the bank’s executive management and the government on key financial sector reforms and national directives. This ensures that the nation’s largest commercial bank acts not just as a financial intermediary but also as a tool for broader economic development and stability, as defined by the Ministry of Finance and the Nepal Rastra Bank.
Moreover, the rotation of senior officials, evident in Bhattarai succeeding Pagnani, is a deliberate move to introduce fresh perspectives and maintain the dynamism required for continuous institutional improvement. The bank has publicly expressed confidence that Bhattarai’s experience will help guide it toward achieving its strategic objectives and cementing its position as one of Nepal’s most reliable and trusted financial partners in a rapidly evolving market.
In conclusion, the appointment of Joint Secretary Mahesh Bhattarai is a strategic step that reaffirms the government’s vested interest in the long-term stability and modernization of Nepal Bank Limited. It signals a reinforced focus on institutional governance and the cohesive advancement of the public and private banking sectors in Nepal.
For More: NBL Director Appointed