KATHMANDU: Deposits at banks and financial institutions (BFIs) increased Rs 154.61 billion (2.7%) in the first four months of current fiscal year 2023/24, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB), on Thursday.
The deposits at BFIs had witnessed an increase of Rs 46.74 billion (0.9%) in the corresponding period of the previous FY.
On y-o-y basis, deposits at BFIs expanded 14.3% in mid-November 2023.
The share of demand, saving and fixed deposits in total deposits stood at 6.1%, 27.3% and 60.2% respectively in mid-November 2023. Such shares were 7.3%, 26.0% and 58.0% respectively a year ago.
The share of institutional deposits in total deposit of BFIs stood at 36.0% in mid-November 2023. Such a share was 37.1% in mid-November 2022.
| Deposits at Banks and Financial Institutions (Percentage Share) | ||||
| Deposits | Mid-July | Mid-November | ||
| 2022 | 2023 | 2022 | 2023 | |
| Demand | 8.9 | 7.7 | 7.3 | 6.1 |
| Saving | 27.6 | 26.6 | 26 | 27.3 |
| Fixed | 55.8 | 58.9 | 58 | 60.2 |
| Other | 7.7 | 6.8 | 8.6 | 6.3 |
Private sector credit from BFIs increased Rs 99.40 billion (2.1%) in the review period compared to an increment of Rs 68.55 billion (1.5%) in the corresponding period of previous year. On y-o-y basis, credit to the private sector from BFIs increased 4.4% in mid-November 2023.
The shares of private sector credit from BFIs to non-financial corporations and households stood at 63.1% and 36.9% respectively in mid-November 2023. Such shares were 64.0% and 36.0% a year ago.
In the first four months ending mid-November, private sector credit from commercial banks, development banks and finance companies increased 2.1%, 1.8% and 1.4% respectively.
Out of the total outstanding credit of the BFIs, 12.1% is against the collateral of current assets (such as agricultural and non-agricultural products) and 67.3% against land and building. Such ratios were 12.3% and 66.8% respectively in the previous FY.
Outstanding loan of BFIs to the industrial production sector increased 5.9%, construction sector 6.5%, transportation, communication and public sector 4.4%, wholesale and retail sector 1.1%, service industry sector 3.7% and consumable sector 2.5% while agriculture sector loan decreased 0.9%.
Likewise, term loan extended by BFIs increased 8.7%, cash credit loan 13.9%, trust receipt (import) loan 18.4%, real estate loan (including residential personal home loan) 4.0%, and margin nature loan 6.4% whereas overdraft loan decreased 40.3% (mainly due to reclassification of loan from the last year) and hire purchase loan decreased 19.1%.
