Niraj Sharma, Chief Human Resource Officer (CHRO) at NMB Bank, began his HR career in 2007 at NCC Bank. He then held roles at NIC Asia and Nabil before joining NMB Bank. Throughout his career, he has guided HR through major changes, including Nepal’s historic first merger of two commercial banks (NIC and Bank of Asia). This merger was a key moment in successfully combining workforces. The HRM Nepal spoke with Sharma, a very experienced professional, to understand the different aspects of human resource management in Nepal’s financial sector, his key insights, and global trends. Below are the excerpts of the interview.
Q: What inspired you to pursue this path?
A: The banking landscape has evolved significantly since then, driven by technology and regulatory shifts, but my passion for HR stems from a deep interest in people and their complexities. Understanding what motivates individuals and fostering their growth within dynamic environments has been my driving force, inspiring me to create inclusive, resilient workplaces that align with organisational goals.
Q: What are some of the key HR strategies that can be implemented to drive organisational effectiveness in context to a bank?
A: To boost effectiveness in banking, HR strategies should focus on people and work together. A people-centric approach attracts and retains talent through strong recruitment, compensation and ongoing training. Aligning employees’ career goals with the bank’s objectives increases motivation and growth, building a dedicated workforce. This drives engagement, supported by open communication, recognition, and a positive, collaborative culture that prioritises well-being.
One of the major challenges is high turnover in technology domain staff. Banks can address this by offering clear career paths, flexible work options, and chances to work on innovative projects.
As technology replaces operational roles, upskilling and reskilling programmes are crucial to keep employees adaptable. This ties back to the people-focused approach, preparing the workforce for a digital-first environment. These connected strategies create a resilient, motivated team, ensuring sustainable growth for banks.
Q: With your extensive experience in HR, could you share some major milestones or achievements your department has accomplished over the years?
A: Throughout my HR career at NIC Asia, Nabil and NMB, two key milestones stand out. First, launching the GESI framework at NMB Bank boosted inclusivity and leadership, creating a more engaged workforce. Second, managing M&A transitions at all three banks I have been associated with, taught me how to ensure smooth integration and maintain employee trust. These efforts built inclusive cultures, navigated complex changes, and strengthened the banks’ resilience for long-term success.
Q: What, in your view, are the most effective ways to manage human resources and promote organisational development in the banking and financial institutions (BFIs)?
A: Managing HR and promoting growth in banking and financial institutions (BFIs) needs a connected and adaptable strategy. Change management is key due to constant shifts in technology, regulations and market needs. Clear communication, stakeholder involvement, and training ensure smooth transitions, keeping employee trust and operations stable.
Similarly, HR development is essential. The focus should be on upskilling and reskilling employees for new roles. Encouraging innovative and adaptable mindsets through leadership programmes and open communication helps employees embrace change and prioritise customers. Managing different generations – from Gen X to Gen Z – requires tailored approaches like flexible work policies, mentoring, and reverse mentoring to bridge gaps and leverage diverse perspectives.
These linked strategies – change management, HR development, mindset shifts, and generational harmony – build a resilient, future-ready workforce that drives growth in BFIs.
Q: How do HR policies contribute to a company’s long-term sustainability and growth?
A: HR policies are pivotal to a company’s long-term sustainability and growth, as they shape the workforce and culture that drive business success. In banking and financial institutions (BFIs), HR is no longer just a business partner but is deeply embedded in the business itself, acting as a strategic force. HR policies establish a strong organisational culture, which is critical in BFIs where products and offerings are often similar across competitors. A distinctive culture – built on values like trust, innovation and customer focus – sets an organisation apart.
By aligning HR policies with business goals, these policies create a cohesive, motivated workforce, ensuring BFIs remain competitive and sustainable in the long term.
Q: What are some of the key gaps you’ve identified, both in employers in fostering an enabling work environment and in employees in delivering results effectively?
A: In my experience, fostering an enabling work environment and ensuring effective performance management reveal critical gaps on both sides in the banking sector.
On the employee side, a significant gap lies in knowledge management. The rapid evolution of banking, driven by technology, regulations and customer expectations, demands that employees continuously learn, unlearn and relearn. Many struggle to keep pace with this cycle, lacking the agility to adapt to new environment. This gap hinders their ability to deliver results efficiently in a fast-changing environment.
On the employer side, a key gap is the failure to fully develop a learning organisation. Employers often fall short in creating systems that prioritise continuous learning and knowledge-sharing. This includes insufficient investment in structured development programmes, mentorship or platforms for cross-functional collaboration, which are essential for building a workforce that can innovate and adapt. Without a robust learning culture, organisations struggle to sustain growth and competitiveness.
Q: Why do you think human resource management has not been prioritised in Nepal, despite HR being considered the future of any organisation?
A: In my view, the historical lack of prioritisation of human resource management in Nepal stemmed from a traditional focus on operational and financial metrics over people-centric strategies, but this mindset is shifting. While HR was once undervalued, there’s now a growing recognition of its critical role in shaping the future of organisations, including in banking. Today, HR professionals are increasingly represented in senior management teams, often reporting directly to the CEO, which reflects a structural shift toward viewing HR as a strategic partner. This change is evident in HR’s active involvement in major business discussions, influencing decisions on growth, culture and innovation.
For instance, at banks like NMB, HR now drives initiatives like talent development and digital transformation alignment, ensuring the workforce supports organisational goals. Though Nepal’s HR landscape still has a long way to go, this evolving mindset – where HR has a seat at the table – marks a significant step toward prioritising human capital as a cornerstone of sustainable success.
Q: Mergers and acquisitions often reduce job opportunities and pose challenges related to cultural integration. How can a bank effectively navigate these complexities?
A: Mergers and acquisitions (M&A) in banking bring both opportunities and challenges, and effective HR strategies are key to navigating them. While M&A may reduce some roles due to overlaps, they also create new opportunities by introducing innovative positions in areas like digital banking and specialised services. To manage these complexities, banks should focus on sharing best practices to harmonise processes and retain expertise across merging entities. Maintaining a mix of talent ensures diverse perspectives, while understanding people’s needs through transparent communication addresses concerns about job security and cultural integration. A critical gap is the lack of HR due diligence, particularly in competency mapping and profiling. While companies prioritise financial and product due diligence, people mapping – assessing workforce skills, competencies, and potential through structured profiling – is equally vital to align roles, identify skill gaps, and prevent talent loss. By integrating competency mapping with cultural integration and open dialogue, banks can build a unified, skilled workforce that capitalises on new opportunities and drives sustainable success.
Q: How challenging is it to retain mid-career professionals in the banking sector? What strategies have you found effective?
A: Retaining mid-career professionals in the banking sector is challenging due to high competition, evolving job expectations, and opportunities elsewhere. These professionals, often at a critical juncture in their careers, seek growth, recognition, and work-life balance. To address this, effective strategies include career development programmes tailored to their aspirations, such as leadership training and skill enhancement in evolving areas. Competitive compensation and benefits, including performance-based incentives, helps the employer to be more competitive.
Fostering a supportive culture through flexible work arrangements and recognition initiatives boosts engagement and loyalty. Additionally, mentorship and clear career pathways ensure mid-career professionals see a future within the organisation. By aligning these strategies banks can retain talent and maintain a motivated, skilled workforce.
Q: Succession planning is critical in the face of senior management turnover. How does a bank approach succession planning across departments?
A: Succession planning is critical in banking to manage senior management turnover effectively. A structured, multi-layered approach is necessary to manage succession risks. For this, knowledge transference should be facilitated through mentorship programmes, enabling experienced leaders to share expertise with younger employees.
Another approach could be to develop knowledge vaults – digital repositories for key processes and policies – established to preserve organisational memory and prevent knowledge loss.
Similarly, a three-level succession planning model for critical roles is advised: immediate successors ready to step in instantly, mid-term candidates developed for roles within 1–3 years through targeted training, and long-term prospects nurtured via leadership programmes for future needs.
Q: What are the major factors that contribute to a bank’s readiness to adopt technology-driven and future-focused learning practices?
A: A bank’s readiness to adopt technology-driven and future-focused learning practices hinges on leadership commitment, workforce agility, and a robust digital learning infrastructure. Senior management must prioritise investment in modern learning tools and foster a culture of continuous up-skilling, while employees should embrace adaptability and digital transformation. A seamless integration of AI-powered learning platforms, micro-learning modules, and personalised training programmes is essential, supported by data analytics to identify skill gaps and measure effectiveness. Similarly, partnerships with Fintech and EdTech providers can further enhance innovation
Q: How important are team-building, and horizontal as well as vertical communication in fostering a cohesive and productive team environment?
A: Team-building and multi-directional communication are essential for creating an agile, collaborative workforce. In today’s fast-paced banking environment, a matrix-style communication structure helps break down silos, fosters innovation through diverse perspectives, and ensures alignment between leadership strategy and frontline execution. Well-designed team-building initiatives strengthen trust and psychological safety, enabling teams to perform under pressure. When communication flows freely across all levels and departments, organisations see improved decision-making, faster problem-solving, and higher employee engagement, all critical for maintaining competitive advantage in the digital-first banking landscape.
Q: As the Head of HR in a prudently regulated sector, are you satisfied with the current regulatory guidance from the central bank regarding HR management?
A: As someone involved in the banking sector since long time, I appreciate the regulatory framework provided by NRB, which ensures stability and compliance. However, I believe there’s room for more flexibility,where the regulator could define the core principles and intended outcomes while allowing banks to design customised HR policies tailored to their unique organisational needs and culture.
A principles-based approach, rather than prescriptive mandates, would enable banks to innovate in talent management while staying aligned with regulatory intent. This balance would promote organisational agility, allowing HR to respond swiftly to market changes, technological disruptions, and workforce expectations. Greater autonomy in policy design, within clear guardrails, would empower banks to foster competitive people practices while maintaining the sector’s prudential standards. Collaborative dialogue between regulators and banks could further refine this equilibrium, ensuring HR frameworks are both compliant and future-ready.
