BFI deposits up to Rs. 7,880B

By A Staff Reporter,Kathmandu, May 15: Deposits at Banks and Financial Institutions (BFIs) increased by 8.5 per cent (Rs. 615.67 billion) to reach Rs. 7,879.54 billion during the first nine month of the current fiscal year, according to the latest macroeconomic and financial report of Nepal Rastra Bank (NRB). 

This compares to a 5.7 per cent (Rs 368.47 billion) increase in the corresponding period of the previous year. On a year-on-year (y-o-y) basis, deposits in BFIs expanded by 15.5 per cent in mid-April 2026.

The composition of deposits also shifted during the period. The share of demand deposits stood at 7 per cent, savings deposits at 45.3 per cent, and fixed deposits at 38.9 per cent in mid-April 2026. A year earlier, the respective shares were 5.7 per cent, 35.8 per cent, and 51 per cent.

According to NRB, institutional deposits accounted for 33.9 per cent of total deposits, down from 35.4 per cent a year earlier.

Meanwhile, private sector credit from BFIs rose by 5.7 per cent (Rs. 311.95 billion) to Rs. 5,809.66 billion, compared to a 7.1 per cent (Rs 361.03 billion) increase in the same period last year. 

On a y-o-y basis, private sector credit grew by 6.9 per cent in mid-April 2026. The shares of private sector credit from the BFIs to non-financial corporations and households stood at 63.3 per cent and 36.7 per cent respectively, in mid-April 2026.

Such shares were 63.4 per cent and 36.6 per cent respectively a year ago. In the review period, private sector credit from commercial banks, development banks and finance companies increased by 5.8 per cent, 5.1 per cent and 2.6 per cent, respectively.

Out of the total outstanding credit of the BFIs as of mid-April 2026, 14.9 per cent is against the collateral of current assets (such as agricultural and non-agricultural products) and 63.4 per cent against land and building. Such ratios were 14.6 per cent and 65.2 per cent, respectively, a year ago

In the review period, outstanding loan of the BFIs to consumable sector increased by 11.7 per cent, construction sector increased by 10.7 per cent, transportation, communication and public sector increased by 10.1 per cent, industrial production sector increased by 6.5 per cent, finance, insurance and fixed assets sector increased by 5.7 per cent and service industry sector increased by 3.1 per cent. However, outstanding loan of BFIs to agriculture sector decreased by 2.3 per cent during the review period.

In the review period, trust receipt (import) loan extended by the BFIs increased by 32 per cent, margin nature loan by 13.4 per cent, hire purchase loan by 8.5 per cent, real estate loan (including residential personal home loan) by 4.6 per cent, demand and other working capital loan increased by 4.3 per cent, term loan by 3.7 per cent, cash credit loan by 2.8 per cent, and overdraft loan by 0.3 per cent.