BFI deposits up by 5%

By A Staff Reporter,Kathmandu, Mar. 15: The growth of deposit mobilisation at banks and financial institutions has increased during the first seven months of the current fiscal year.

The deposits mibilisation at BFIs amounted to Rs. 253.97 billion (5 per cent) in the review period compared to Rs. 167.34 billion (3.6 per cent) in the corresponding period of the previous year.  On y-o-y basis, deposits at BFIs expanded by 10.5 per cent in mid-February 2023.

According to the current macroeconomic and financial report of Nepal Rastra Bank, the share of demand, saving, and fixed deposits in total deposits stand at 7.8 per cent, 25.8 per cent and 60 per cent respectively in mid-February 2023.

Such shares were 8.3 per cent, 30.1 per cent and 54.7 per cent respectively a year ago.

The share of institutional deposits in total deposit of BFIs stands at 36.6 per cent in mid-February 2023. Such share was 38.8 per cent in mid-February 2022.

Private sector credit from BFIs increased only by Rs. 148.12 billion (3.2 per cent) in the review period compared to an increase of Rs. 503.99 billion (12.3 per cent) in the corresponding period of previous year. 

The shares of private sector credit from BFIs to non-financial corporation and household stand at 64.5 per cent and 35.5 per cent respectively in the first seven months of the current fiscal year.

In the review period, private sector credit from commercial banks, development banks and finance companies increased by 3.2 per cent, 4.1 per cent and 0.8 per cent respectively.

In the review period, out of the total outstanding credit of the BFIs, 67.3 per cent is against the collateral of land and building and 12.2 per cent against the collateral of current assets (such as agricultural and non-agricultural products). 

In the review period, outstanding loan of BFIs to the agricultural sector increased by 6 per cent, industrial production sector by 8.6 per cent, construction sector by 4.2 per cent, transportation, communication and public sector by 9.6 per cent, wholesale and retail sector by 3.4 per cent, service industry sector by 6.1 per cent and consumable sector by 1.5 per cent.

In the review period, term loan extended by BFIs increased by 13.9 per cent, demand and working capital loan by 2.5 per cent, real estate loan (including residential personal home loan) by 2.4 per cent whereas overdraft loan decreased by 56.2 per cent.

However, trust receipt (import) loan extended by BFIs decreased by 0.7 per cent, margin nature loan by 7.1 per cent and hire purchase loan decreased by 9.9 per cent during the review period.