The bank can be classified into following type
1) Commercial Bank
The commercial bank is the oldest type of bank. In general, the term is used to mean a commercial bank. The main objective of this bank is to earn profit. This types of bank was initially established to provide short-term loans to the traders. Hence, this bank is called commercial bank. Nepal bank ltd is Nepal first commercial bank. Now there are 32 commercial banks in Nepal.
2) Central Bank
A central bank is established in every country. This bank is established under complete government ownership.
The main function of its to issues notes and coins. Nepal Rastra Bank established in 1956 is the central bank of Nepal. The main function functions of a central bank is to issues notes and coins.
3) Agriculture bank
The bank established for the development and modernization of agriculture sector is called agricultural bank. Since, it is established as specialised institution for the development of agriculture, it is also known as development bank.
4) Development Bank
Banks established for the development of agriculture, industry, tourism, and mining are known as development banks. In Nepal separate development banks have been established in the private sector since 1998.