Bank Deposits Rise by Rs. 417 Billion in Six Months, Credit Flow Improves

During the first six months of the current fiscal year 2082/83, deposits in banks and financial institutions in Nepal increased significantly. According to data published by Nepal Rastra Bank, total deposits rose by NPR 417.48 billion, reflecting a growth of 5.7 percent. By mid-January, total deposits reached NPR 7.68 trillion. On a year-on-year basis, deposits increased by 14.8 percent, with current, savings, and fixed deposits accounting for 6.9 percent, 41.3 percent, and 42.8 percent respectively. Institutional deposits stood at 35.1 percent. Meanwhile, private sector credit expanded by NPR 197.47 billion (3.6 percent) to reach NPR 5.69 trillion. Credit growth was mainly directed toward non-financial institutions (62.7 percent) and households (37.3 percent). Housing and real estate loans remained dominant at 63.9 percent, while agriculture and commodity-backed loans accounted for 15 percent. Sector-wise, credit increased in consumption, construction, transportation, industry, and services, while agricultural lending declined by 1.1 percent. Margin loans, import credit, and hire purchase loans also recorded notable growth, indicating improving liquidity and lending activity in the banking sector.