Bank deposits increase by 4.3%

By A Staff Reporter,Kathmandu, Apr. 13: Deposits collection of Banks and Financial Institutions (BFIs) increased by 4.3 per cent during the first eight months of the current fiscal year 2024/25.

According to latest macroeconomic and financial situation report made public by NRB, deposit mobilisation at BFIS increased by Rs. 277.23 billion in the review period compared to an increase of Rs. 435.87 billion in the corresponding period of the previous year. 

On year-on-year (y-o-y) basis, deposits at BFIs expanded by 9.5 per cent in mid-March 2025.

The share of demand, saving, and fixed deposits in total deposits stood at 5.4 per cent, 35.3 per cent, and 51.7 per cent respectively in mid-March 2025. 

Such shares were 6.5 per cent, 28 per cent, and 58.7 per cent respectively a year ago.

The share of institutional deposits in total deposit of BFIs stood at 35.4 percent in mid-March 2025. Such a share was 36.5 percent a year ago.

Meanwhile, private sector credit from BFIs increased by Rs. 304.82 billion (6 per cent) in the review period compared to an increase of Rs. 199.5 billion (4.2 per cent) in the corresponding period of the previous year. 

On y-o-y basis, credit to the private sector from BFIs increased by 7.7 per cent in mid-March 2025.

The shares of private sector credit from BFIs to non-financial corporation and household stand at 63.2 per cent and 36.8 per cent respectively in mid-March 2025. 

Such shares were 63.2 per cent and 36.8 per cent a year ago.

In the review period, private sector credit from commercial banks, development banks, and finance companies increased by 6.3 per cent, 3.1 per cent, and 5.7 per cent respectively.

Out of the total outstanding credit of BFIs as of mid-March 2025, 14.5 per cent is against the collateral of current assets (such as agricultural and non-agricultural products) and 65.2 per cent against land and buildings. 

In the review period, outstanding loan of BFIs to the industrial production sector increased by 9.3 per cent, construction sector by 9.5 per cent, wholesale and retail sector by 4.4 per cent, transportation, communication and public sector by 7.8 per cent, service industry sector by 8 per cent, and consumable sector by 6.7 per cent.

In the review period, term loan extended by BFIs increased by 3.7 per cent, margin nature loan by 31.5, trust receipt (import) loan by 58.1 per cent, hire purchase loan by 4.7 per cent, cash credit loan by 3.6 per cent and real estate loan (including residential personal home loan) increased by 5.95 per cent. 

However, the overdraft loan disbursed by BFIs decreased by 12.6 per cent.