KATHMANDU: Kist Bank Ltd has started operations as the 26th ‘A’ class commercial bank of the country.

Established on February 21, 2003 as Kist Merchant Banking and Finance Company Ltd — a C- class finance company — Kist Bank is the second finance company to upgrade directly to A-class commercial bank after NMB Bank.

Though Nepal Rastra Bank (NRB) had already permitted Kist Bank to operate as an A-class commercial bank, central bank deputy governor Bir Bikram Rayamajhi today formally inaugurated it as the 26th commercial bank.

On the occasion, bank CEO Kamal Prasad Gyawali said Kist Bank plans to become the best bank in the country by providing innovative and better services.

“The bank will open a total of 50 branches,” informed Rajesh Shakya, chairman of the bank that has 5,000 share holders. It has 24 branches and 22 ATMs currently.

The total number of the branches of all 26 commercial banks has touched 640. There are a total of 26 commercial bank, 58 development banks, 78 finance companies and 12 micro-finance companies, according to NRB data.

The total deposit of all the financial institutions has touched Rs 4.78 trillion.

With the increasing number of financial institutions in the country, the issue of good governance has also come to fore.

“Good governance of the institutions is a must for for sustainable growth,” said Sashin Joshi, president of Nepal Bankers’ Association (NBA) and CEO of NIC Bank.

Securities Board of Nepal (Sebon) chairman Dr Subir Poudel also said, “The companies now have to focus on good governance.”