Reform Task Force Urges Government to Float IPO of Rastriya Banijya Bank

The Banking Sector Reform Recommendation Task Force has advised the government to take state-owned Rastriya Banijya Bank (RBB) public by issuing an initial public offering (IPO). The recommendation was submitted to Nepal Rastra Bank (NRB) on Tuesday as part of a broader reform roadmap aimed at strengthening Nepal’s banking sector. With a capital base of Rs. 15.63 billion, RBB is the largest public enterprise among commercial banks.

Out of Nepal’s 20 commercial banks, 19 have already issued shares to the public, including Nepal Bank Limited and Agriculture Development Bank. Despite long-standing discussions, RBB has yet to go public due to limited government initiative, even though the Bank and Financial Institution Act, 2017, requires commercial banks to float at least 30 percent of their shares. Currently, RBB has a paid-up capital of Rs. 25.63 billion, meaning an IPO could amount to around Rs. 4.69 billion.

Financially, RBB has shown strong performance. The bank posted a net profit of Rs. 3.81 billion in FY 2024/25, while profits in the first quarter of the current fiscal year reached Rs. 598.7 million—more than triple the amount earned during the same period last year.