Deposits 3% higher in first three months of current FY

By A Staff Reporter,Kathmandu, Nov. 19: Deposits mobilisation of Banks and Financial Institutions (BFIs) have grown by 3 per cent during the first three months of the current fiscal year 2025/26.

According to the macroeconomic and financial situation report of the first three months of current fiscal year made public by Nepal Rastra Bank (NRB), the deposits at BFIs increased by Rs. 218.72 billion (3 per cent), reaching Rs. 7,482.59 billion.

This growth is slightly higher than the 2.6 per cent rise (Rs. 170 billion) recorded in the same period last year. 

On y-o-y basis, deposits at BFIs expanded by 13 per cent as of mid-October 2025.

The share of demand, saving and fixed deposits in total deposits stood at 6.4 per cent, 38.7 per cent and 46.4 per cent respectively in mid-October 2025. 

Such shares were 5.4 per cent, 32.7 per cent and 54.8 per cent respectively a year ago.

The share of institutional deposits in total deposit of BFIs stood at 35.3 per cent in mid-October 2025. Such a share was 35.8 per cent a year ago.

Private sector lending from BFIs increased only by 1.5 per cent (Rs. 82.93 billion), reaching Rs. 5,580.64 billion in the review period. 

This marks a slower growth compared to the 2.5 per cent increase (Rs. 128.65 billion) seen in the same period last year. 

On a year-on-year basis, private sector lending from BFIs rose by 7.3 per cent in mid-October 2025.

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

Such shares were 64 per cent and 36 per cent a year ago. In the review period, private sector credit from commercial banks, development banks and finance companies increased by 1.6 per cent, 0.5 per cent and 1.6 per cent respectively.

Out of the total outstanding credit of the BFIs as of mid-October 2025, 15 per cent is against the collateral of current assets (such as agricultural and non-agricultural products) and 64.3 per cent against land and building. 

Such ratios were 13.4 per cent and 65.8 per cent respectively a year ago.

In the review period, outstanding loan of BFIs to construction sector increased by 2.9 per cent, transportation, communication and public sector by 2.4 per cent, industrial production sector by 2.4 per cent, consumable sector by 1.6 per cent, and wholesale and retail sector by 1.4 per cent.

However, outstanding loan of BFIs to service industry sector decreased by 0.3 per cent during the review period, according to the NRB.

In the review period, real estate loan (including residential personal home loan) extended by BFIs increased by 3.2 per cent, margin nature by 3.0 per cent, cash credit loan by 2.7 per cent, term loan by 0.7 per cent, and hire purchase loan by 0.6 per cent. 

However, trust receipt (import) loan decreased by 4.3 per cent and overdraft loan by 3.3 per cent.