Next-gen Bankers

The banking sector is going through a major shift. In the past four years, 11 leading commercial banks have appointed new CEOs—part of a larger wave of leadership changes driven by generational turnover and evolving business needs. This marks a move away from legacy-driven management toward leadership that is digital-savvy and focused on customer experience.

These changes have come at a challenging time. The economy is seeing uncertainty, regulations are getting tighter and technology is reshaping how banking works. Unlike past leadership transitions that were mainly about scaling up and boosting capital, today’s CEOs face a more complex agenda. They must deal with post-merger fatigue, push forward digital transformation and manage excess liquidity while keeping an eye on rising non-performing loans (NPLs).

Some recent appointments reflect this new reality. Manoj Gyawali at Nabil Bank, Gorakh Rana at Standard Chartered (its first Nepali CEO) and Govind Ghimire at NMB Bank all bring local experience and deep knowledge of their institutions. The trend is clear: banks are looking inward for leaders who understand the local context and can adapt quickly. This shift is part of a larger change in the banking model itself. While banks have made progress in areas like digital payments and mobile banking, core functions such as credit assessments and loan processing still rely heavily on outdated systems. Closing this gap between flashy front-end apps and slow back-end operations will be one of the biggest challenges for the new generation of CEOs.

The new CEOs also inherit a sector still feeling the effects of the pandemic-era lending spree. Many banks are now dealing with problem loans that resulted from weak due diligence and lax lending standards. NPLs are hovering around 5%, and there is more money in the system than the economy can absorb, due to sluggish private investment. SMEs—once the backbone of Nepal’s economy—are struggling to repay loans. There are widespread concerns about how loans were used and how few options banks have for recovering bad debts. Ideas like setting up a ‘bad bank’ to absorb toxic assets and introducing sector-specific recovery plans offer some hope. But experts warn that unless Nepal develops a coordinated national credit strategy, these efforts will not be enough. Credit must be directed toward productive sectors like agriculture, energy and tech-based MSMEs. Otherwise, liquidity will remain idle, and economic recovery will stall.

At the same time, customer expectations are evolving fast. Young consumers want smooth digital services, personalized financial products and clear commitments to sustainability. While QR payments and mobile banking are now common, lending and investment options still feel outdated to many. The future of banking will rely heavily on fintech partnerships, AI-based credit scoring and alternative lending models. But a growing skills gap, worsened by youth migration, could hold back progress. Banks urgently need to invest in staff training, leadership development and recruitment in tech and data roles.

Ultimately, the strength of the banking sector will depend on how well its leaders manage risk while embracing innovation. CEOs must push for smarter regulations, build digital infrastructure and regain public trust in the credit system. The new leadership must navigate short-term challenges while laying the foundation for a more modern and resilient financial ecosystem. Their ability to adapt—quickly and decisively—will determine whether banks can power the country’s growth or remain stuck in the past.

Madan Lamsal
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