Bagmati Province accounts for 65.8 pc of deposits and 59.5 pc of loans: NRB report

KATHMANDU: Bagmati Province has the highest share of deposits and loans among banks and financial institutions (BFIs).

The Economic Activities Study annual report for fiscal year 2024/25, published by Nepal Rastra Bank (NRB) on Thursday, shows that of the total deposits mobilised by BFIs up to July 16, 2025, Bagmati Province accounted for 65.8% of deposits and 59.5% of total loan disbursement.

BFIs collected total deposits of Rs 7,295 billion in fiscal year 2024/25. Of this, Rs 4,797 billion was collected from Bagmati Province.

Similarly, Rs 553 billion was collected from Koshi Province, Rs 407 billion from Madhes Province, Rs 612 billion from Gandaki Province, Rs 91.9 billion from Karnali Province and Rs 173 billion from Sudurpashchim Province.

Likewise, of Rs 5,586 billion in loans disbursed up to mid‑July 2025, Rs 3,323 billion was invested in Bagmati Province, while Rs 613 billion was disbursed in Koshi Province, Rs 495 billion in Madhes, Rs 356 billion in Gandaki, Rs 577 billion in Lumbini, Rs 62.12 million in Karnali and Rs 157 billion in Sudurpashchim.

According to the NRB, loans disbursed by BFIs in the agro sector reached Rs 336 billion, a reduction of 0.04% up to July 16, 2025, compared with the corresponding period of the previous fiscal year. Of the total agro loans disbursed in the last fiscal year, the largest amount was for livestock and animal slaughtering at Rs 61.19 billion, while the smallest was for tobacco at Rs 206 million.

Koshi Province has a 16.7% share of agro‑sector loans, Madhes 18.7%, Bagmati Province 36.2%, Gandaki 7.1%, Lumbini 15.0%, Karnali 1.5% and Sudurpashchim 4.7%.

By the end of last Asar (July 16, 2025), loans amounting to Rs 1,699.49 billion had been disbursed in the industrial sector, representing 30.42% of total loans.

Within industrial lending, the highest disbursement was in the non‑food manufacturing sector at 35.27%, followed by electricity, gas and water at 26.26%; agriculture, forestry and beverage‑related industries at 21.85%; construction at 11.70%; metal products, machinery and electronics at 4.23%; and the lowest in mining at 0.69%.

The report states that, as of the end of last Ashar, Bagmati Province had the largest share of industrial loans disbursed, Rs 1,280.97 billion, accounting for 71.3% of annual industrial lending. Loan disbursement to the industrial sector was 10.5% in Koshi Province, 8.3% in Lumbini, 7.5% in Madhes, 1.6% in Gandaki, 0.2% in Karnali and 1.6% in Sudurpashchim.

Loan disbursement in the service sector reached Rs 2,184.04 billion by the end of the last fiscal year. During this period, 39.1% of total credit from BFIs was directed to the service sector.

Of service‑sector loans, the wholesale and retail sub‑sector received the largest share at 47.3%, followed by real estate at 12.2%, tourism at 11.8%, finance, insurance and immovable property at 11.3%, education at 6.6%, transport, storage and communication at 3.7%, other service sub‑sectors at 3.7% and health and other social‑related sub‑sectors at 3.3%.

Bagmati Province’s share of loans disbursed in the service sector is 59.5%. Lumbini has 10.3%, Koshi 10.1% and Madhes 9%. Gandaki accounts for 6.9%, Karnali 1.1% and Sudurpashchim 3% of service‑sector lending.

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