Just Keep Going: Citizens Bank's Message to Nepal's Entrepreneurs

An Interview with Sudhir Regmi, Head-SME Banking Unit, Citizens Bank International Limited. (CZBIL)

Nepal’s banking sector is evolving rapidly, with digital innovation, financial inclusion, and affordable financing becoming key drivers of sustainable economic growth. As one of the country's leading commercial banks, Citizens Bank International Ltd. (CZBIL) has continued to strengthen its presence through customer-centric banking, technological advancement, and products designed to support businesses of all sizes.

In this exclusive interview with Mr. Sudhir Regmi _ Head - SME Banking Unit. He shares remarkable growth journey, CZBIL’s strategy for standing out in Nepal’s competitive banking industry, its commitment to expanding financial access in underserved regions, and the vision behind the newly launched Easy Business Loan campaign. The discussion also highlights the bank’s perspective on the current business environment and its continued commitment to empowering entrepreneurs and contributing to Nepal’s economic development.

Q1. Sir, Citizens Bank International Ltd. has grown significantly since its establishment. Could you briefly share the bank’s journey and key milestones achieved over the years?

Citizens Bank International Ltd has made considerable progress since inception and has grown into one of the well-established Commercial Banks in Nepal with a strong presence across the country. The bank has expanded its reach to different parts of Nepal through its branch network of 200 across the Himal, Pahad and Terai regions and has provided quality banking services to people throughout the nation.

The bank has been making significant progress in the digital front and process automation, which has helped us receive a prestigious award the “Bank of the Year 2024” and “Bank of the Year 2025” for two consecutive years. These awards recognize our success in providing excellent services to our customers, commitment towards process automation and the hard work and commitment of our teams towards the bank’s mission & vision.

Q2. Nepal’s banking industry is highly competitive, with banks continuously introducing new products and services to attract and retain customers. How does CZBIL differentiate itself from competitors to ensure sustainable growth?

The modern banking industry involves more than deposit and loan products. It is all about understanding customer needs and helping them find the best financials solution. Citizens Bank is committed to deliver tailored financials products that support customers at every stage of their financial journey. We have made significant investments in technological innovations for improving the speed and accessibility of our banking services along with the personalized service that we offer. We are the first bank to introduce Virtual Credit Card (VCC). We also offer OR Merchant loan based on transaction history and currently working on a Digital Enterprise loan in Madesh and Koshi Province

Q4. As per Nepal Rastra Bank data as of Poush 2082, savings account penetration reached 605 percent in metropolitan cities, 299 percent in sub-metropolitan cities, 177 percent in municipalities, and only 70 percent in rural municipalities. Some argue that financial institutions have focused more on urban markets than rural areas. Do you agree with this assessment, and how is CZBIL addressing financial inclusion in underserved regions?

In the past, banks naturally established their presence in cities, as these areas witnessed significant business transactions and economic activities. Thus, account opening was easier in urban areas than in semi-urban and rural areas due to higher economic activity and better access to banking services. However, this scenario is continuously changing with time. Citizens Bank has increased its presence in rural areas by establishing branches in remote districts such as Humla, Mugu, Dolpa and Darchula. These branches are not opened solely with a profit motive rather they aimed at serving the financials needs of people living in rural communities and promoting financials inclusion.

What we need to understand is that due to low levels of financial literacy and geographical disadvantage, opening and operating bank accounts in rural areas is often more challenging than in urban areas. To address this gap, the bank regularly conducts financial literacy programs in these areas to raise awareness about financials products and services, helping people understand their financials needs. Therefore, rural areas cannot be directly compared with urban areas, as they face unique challenges in terms of financial literacy, accessibility and economic opportunities.

Q5. CZBIL recently introduced the Easy Business Loan. Could you explain the key features of this product and how it supports Nepal’s business community?

First of all, I am delighted to share that to mark Citizens Bank's 19th anniversary, our bank has launched the 'Easy Business Loan' campaign.

The key features of this product are highly customer-centric. We are offering two distinct variants: Fixed Rate Option at an incredibly competitive 5.99% p.a. for the first 2 years for loans up to NPR 50 Million, and a Floating Rate Option with 0% premium over the 3-month average base rate for loans up to NPR 2.5 Million. Both variants have a minimal management fee of just 0.50%.

M/SMEs are considered to be the backbone of our economy but often suffer from unpredictable interest rate hikes. By locking in a low fixed rate for 2 years or eliminating the premium entirely, we are injecting predictable, affordable capital into the market. This allows local businesses to manage their cash flows safely, expand operations, and drive economic growth in their communities.

Q6. Could you make us understandable, what distinguishes the Easy Business Loan from conventional business financing products available in the market?

What distinguishes the CZBIL Easy Business Loan is its unprecedented cost-transparency and stability. We have completely removed the risk of immediate rate hikes by freezing the rate at 5.99% for two full years under the Fixed scheme. Even under our Floating scheme, we have waived the premium entirely (0% premium). Furthermore, we are offering an aggressive Loan to Value ratio of up to 100% of the Distress Value for smaller facilities. In short, while conventional financing prioritizes risk-premium pricing, we are prioritizing customer focused and value based lending during this anniversary campaign.

Q7. Based on Easy Loan Campaign, which types of businesses or entrepreneurs are best suited to benefit from the Easy Business Loan facility?

This campaign has been specifically structured to cater to two distinct segments of the M/SME ecosystem:

Firstly, our Floating Scheme (up to NPR 2.5 Million) is ideal for micro and small traders, retailers, or agricultural firms, who need low-cost, short-term working capital to manage their day-to-day operational liquidity with LTV ratio at 100% of the Distress Value.

Secondly, our Fixed Scheme (up to NPR 50 Million) is tailor-made for growing enterprises requiring long-term structured funding. This is not just for capital expenditure like buying plant and machinery, but importantly for financing Permanent Working Capital a stable source of long - term funding to meet the ongoing working capital requirement.

Q8. Access to finance is often a major challenge for first-time entrepreneurs. How does CZBIL support new and aspiring business owners through this product or other initiatives?

Yes, this is indeed a very real challenge, especially for first - time entrepreneurs as they usually don’t have much financial history or strong collateral in the beginning.

At Citizens Bank International Ltd, we try to support them by looking beyond just traditional requirements. Through products like the Easy Business Loan and other MSME - focused lending schemes, we aim to make the process more approachable for new business owners who have a genuine idea and the ability to run a business. We also work closely with customers to understand their business plans and guide them on how to structure their financing in a practical way.

Apart from lending, we also focus on financial awareness and guidance, because many first-time entrepreneurs are not just looking for money, they also need direction on how to manage it properly. Our goal is to be a partner in their journey, not just a lender.

Q9. Based on your experience, what are the most common reasons businesses seek financing in the current economic environment?

Our understanding is that businesses are not currently borrowing for large expansion. Most of the demand is coming from day to day operational needs. The majority of business demand comes from working capital loans. Traders and manufactures need support to maintain stock, ensure smooth operations, meet creditor obligations, manage cash flows and cover expenses as payment and sales do not always occur at the same time. So overall, it’s quite simple right now, most businesses are borrowing not to grow aggressively, but to keep things stable and manage their day-to-day operations properly.

Q10. Finally, what message would you like to share with Nepal’s entrepreneurs and small business owners who are looking to start, expand, or strengthen their businesses?

My message to Nepalese entrepreneurs is very simple: “Just keep going”.

Starting or running a business is not always easy. There are ups and downs, but if you stay focused and keep working steadily, things slowly start to improve. Don’t be afraid to start small, and don’t be afraid to ask for support when you need it. We at the bank are always there to support you as a financial partner, not just a lender.  Our bank offers highly competitive interest rate for M/SME customers. For low financing costs, we request you to visit Citizens Bank and allow us the opportunity to serve your financials needs.