NMB BANK LIMITED: PIONEERING SUSTAINABLE AND RESPONSIBLE BANKING

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4th January 2026, Kathmandu

In the evolving financial landscape of Nepal, NMB Bank Limited has distinguished itself as a leader in value-based and sustainable banking. Licensed as an A-class commercial bank by Nepal Rastra Bank in May 2008, the bank carries a legacy of over twenty years, originally starting as a merchant bank.

NMB BANK LIMITED

Today, it is recognized globally for its commitment to the real economy, environmental sustainability, and social responsibility. As of late 2025, NMB Bank continues to lead the sector through its strategic joint venture with the Dutch development bank FMO, which holds a 13.69 percent stake, and its groundbreaking initiatives in green finance. This article provides an SEO-optimized profile of NMB Bank, detailing its financial milestones, digital transformation, and its vision for a greener Nepal.

A STRATEGIC ALLIANCE FOR SUSTAINABILITY

The partnership between NMB Bank and FMO—the Netherlands Development Finance Company—is a defining feature of the bank’s institutional identity. This alliance, finalized in 2016, has positioned NMB as a market leader in managing environmental and social risks. FMO’s involvement goes beyond shareholding; it has infused international best practices into the bank’s credit processes, particularly in renewable energy and agribusiness financing. By 2025, this collaboration has expanded to include major deals with the IFC and British International Investment (BII), solidifying NMB’s role as the primary channel for international sustainable capital in Nepal.

VISION MISSION AND THE 5BS CORE VALUES

NMB Bank operates with a clear vision to build communities through responsible banking, ensuring it remains the preferred choice for all stakeholders. Its mission is to enable clients to achieve financial security while promoting sustainable socio-economic development. This purpose is driven by the 5Bs core values: Be innovative with changing times Be a team player and deliver results collaboratively Be responsible for actions Be prudent for sustainable and consistent growth Be committed to service excellence

These values have earned the bank prestigious global recognition. NMB Bank holds the rare distinction of being awarded Bank of the Year Nepal four times (2017, 2018, 2020, and 2021) and was even named Bank of the Year 2021 Asia by The Banker, Financial Times, London.

FINANCIAL PERFORMANCE HIGHLIGHTS 2024-2025

The fiscal year 2081/82 (2024/25) has been a year of robust growth for NMB Bank. Despite market challenges, the bank reported a significant 27.19 percent increase in net profit, reaching 2.85 billion Nepalese Rupees. This growth was supported by a strong 24.9 percent surge in total deposits, which climbed to 283.65 billion Nepalese Rupees.

Key financial metrics for the year include: Loans and Advances: 243.30 billion Nepalese Rupees, reflecting an 18.91 percent increase. Capital Adequacy Ratio (CAR): 11.92 percent, safely above the regulatory minimum. Net Interest Income: 8.02 billion Nepalese Rupees. Non-Performing Assets (NPA): 4.11 percent, reflecting the bank’s proactive approach to credit recovery in a tight economy. Return on Equity (ROE): Continued improvement driven by efficient capital management.

In late 2025, the bank announced a 10 percent dividend for its shareholders, consisting of 5 percent bonus shares and 5 percent cash dividend, rewarding its investors for the bank’s strong performance in the previous fiscal year.

THE GREEN BOND AND RENEWABLE ENERGY LEADERSHIP

NMB Bank is a pioneer in green financing in Nepal. In April 2025, the bank signed a landmark 60 million dollar green bond deal with the IFC, BII, and MetLife. This was the first ever thematic bond issuance in Nepal’s capital markets, specifically designed to fund small and medium enterprises involved in sustainable projects, such as electric vehicles and solar energy.

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The bank’s loan portfolio is strategically weighted toward the real economy: Energy Sector: 13.05 percent of total credit. Agriculture Sector: 12.04 percent of total credit. MSME Financing: 6.86 percent of total credit.

Through its Energy Bonds and Debentures, which have raised over 12 billion Nepalese Rupees, NMB Bank has become the largest financier of hydropower and renewable energy projects among private banks in Nepal.

DIGITAL TRANSFORMATION AND NETWORK REACH

Innovation is at the heart of NMB’s operational strategy. In December 2025, NMB Bank was recognized with the Digital Services ICT Award (Enterprise Sector) for its excellence in digital transformation. The bank’s omnichannel banking platform allows customers to enjoy a seamless experience across mobile and desktop devices.

As of late 2025, the bank’s network includes: 202 Branch Offices nationwide. 184 ATMs. 9 Extension Counters.

From digital onboarding to QR based payments and international USD cards, NMB Bank provides a comprehensive suite of modern banking services that prioritize customer convenience and financial inclusion.

CORPORATE SOCIAL RESPONSIBILITY (CSR) AND GESI

NMB Bank allocates 1 percent of its net profit to CSR activities, focusing on education, health, and environmental sustainability. In 2025, the bank launched the NMB NextGen Banking Leaders Scholarship to support deserving students. The bank is also a leader in Gender Equity and Social Inclusion (GESI), implementing policies that promote workplace diversity and ensure that banking services are accessible to women and marginalized communities.

CHALLENGES AND STRATEGIC OUTLOOK

While NMB Bank demonstrates strong resilience, it faces challenges from high interest rate volatility and the slow pace of domestic capital expenditure. The bank is proactively managing these risks through a prudent capital structure, with a total core capital of 27.59 billion Nepalese Rupees. Looking ahead to 2026, the bank plans to further reduce its carbon footprint and aims for carbon neutrality in its internal operations while expanding its green lending portfolio.

CONCLUSION

NMB Bank Limited is not just a financial institution; it is a catalyst for sustainable development in Nepal. With its strong international partnerships, record breaking green initiatives, and a consistent history of financial excellence, it remains the bank of choice for those who value responsible and ethical banking. As it moves toward 2026, NMB Bank is well-positioned to lead Nepal’s transition to a greener, more inclusive economy.

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