Bank deposits higher by 12.6 per cent in 2024/25

By A Staff Reporter,Kathmandu, Aug. 27: Deposits collection of Banks and Financial Institutions (BFIs) increased by 12.6 per cent in the last fiscal year 2024/25.

According to the macroeconomic and financial report made public by Nepal Rastra Bank (NRB), deposits at BFIs increased by Rs. 811.49 billion (12.6 per cent) in the review year compared to an increase of Rs. 742.37 billion (13 per cent) in the previous year.

The share of demand, saving, and fixed deposits in total deposits stands at 7.1 per cent, 36.8 per cent and 48.3 per cent respectively in mid-July 2025. 

Such shares were 5.8 per cent, 30.3 per cent and 56.4 per cent respectively a year ago.

The share of institutional deposits in total deposit of BFIs stood at 36.1 per cent in mid-July 2025. Such a share was 36.2 per cent in mid-July 2024.

Similarly, private sector credit from BFIs increased by Rs. 423.73 billion (8.4 per cent) in the review year compared to an increase of Rs. 276.94 billion (5.8 per cent) in the previous year.

The shares of private sector credit from BFIs to non-financial corporation and households stood at 62.8 per cent and 37.2 per cent respectively in mid-July 2025. 

Such shares were 63.3 per cent and 36.7 per cent a year ago.

In the review year, private sector credit from commercial banks, development banks and finance companies increased by 8.6 per cent, 6.1 per cent and 8.4 per cent respectively.

In the review year, out of the total outstanding credit of the BFIs, 64.7 per cent is against the collateral of land and buildings and 14.5 per cent against the collateral of current assets (such as agricultural and non-agricultural products). 

Such ratios were 66.5 per cent and 13.2 per cent respectively a year ago.

Outstanding loan of BFIs to the industrial production sector increased by 7.9 per cent, transportation, communication and public sector increased by 15.5 per cent, wholesale and retail sector increased by 3.4 per cent and service industry sector increased by 12.8 per cent.

However, outstanding loan of BFIs to agriculture sector decreased by 0.2 per cent in the review year.

In the review year, term loan extended by BFIs increased by 7.1 per cent, real estate loan (including residential personal home loan) by 5.9 per cent, margin nature loan by 56.2 per cent, hire purchase loan by 3.7 per cent, working capital loan by 13.2 and trust receipt (import) loan by 51.1 per cent.However, overdraft loan extended by BFIs decreased by 10.4 per cent last fiscal year.