A development bank is a financial organization engaged in the promotion of industry, agriculture and other key sectors. Development banks in Nepal are ‘ B’ type of financial Institutions. On the basis of geographical coverage and activity level, the development banks are three types and these are:
Firstly, development Banks primarily aim to accelerate the rate of growth. But, the main objective of these banks is to serve the public interest rather than earning profits. It is a multipurpose financial institution. After all a development bank does not accept deposits from the public like commercial Banks and other financial institutions that entirely depend upon saving mobilization.
Moreover, as per the latest data from Nepal Rastra Bank, at present, there are 32 Development Banks in Nepal.
Above all, the development banks have been started with the motive of increasing the pace of industrialization. Similarly, traditional financial institutions could not take up this challenge because of their limitations. In addition, to help all round industrialization development banks were made multipurpose institutions. Besides financing, they were assigned promotional work also.
Therefore, the list of the class ‘B ‘ banks currently providing banking services in Nepal along with their head offices and operation date are listed below:
Ten District Development Bank