By A Staff Reporter, Kathmandu, Jan. 20: Growth rate of deposit collection of banks and financial institutions (BFIs) has decreased in the first five months of the current fiscal year.

The deposits collection of BFIs has increased by 4 per cent in mid-December 2019 compared to an increase of 6.2 per cent in the corresponding period of the previous year.

On y-o-y basis, deposits at BFIs expanded by 15.6 per cent in mid-December 2019.

The share of demand, saving, and fixed deposits in total deposits stands at 8.1 per cent, 32 per cent and 49.1 per cent respectively in mid-December 2019, according to a macroeconomic and financial report of Nepal Rastra Bank (NRB).

Such shares were 8.8 percent, 33.4 percent and 47.5 percent respectively a year ago.

The share of institutional deposits in total deposits of BFIs stands at 45.4 per cent in mid-December 2019 while it was 45.1 per cent same period last year.

Credit to the private sector from BFIs increased by 6.2 per cent in the review period compared to a growth of 10.2 per cent in the corresponding period of the previous year.

On y-o-y basis, credit to the private sector from BFIs increased by 15 per cent in mid-December 2019.

Of the total outstanding credit of the BFIs, 64.7 per cent is against the collateral of land and building and 13.6 per cent against the collateral of current assets (agricultural and non-agricultural products).

Loan of BFIs to agriculture sector increased by 5.6 per cent, industrial production sector increased by 6.8 per cent, construction sector increased by 7.7 per cent, transportation, communication and public sector increased by 8 per cent and service industry sector increased by 7.7 percent in the review period.

In the review period, term loan extended by BFIs has increased by 11.1 per cent, overdraft increased by 2.1 per cent, trust receipt (import) loan increased by 4.9 per cent, demand and working capital loan increased by 7.8 percent, real estate loan (including residential personal home loan) increased by 6.8 percent and hire purchase loan increased by 1.3 per cent whereas margin nature loan decreased by 1.8 per cent.