Deposits at BFIs rise 5.7 pc, private sector credit up 3.6 pc in six months: NRB

KATHMANDU: Deposits at banks and financial institutions (BFIs) increased 5.7% (Rs 417.48 billion) to Rs 7,681.35 billion in the first six months of fiscal year 2025/26. This compares to a 3.7% (Rs 239.06 billion) growth in the corresponding period of the previous year, according to the macroeconomic and financial situation report released by Nepal Rastra Bank (NRB) on Monday.

On a year‑on‑year basis, deposits at BFIs expanded 14.8% in mid‑January 2026.

The share of demand, saving and fixed deposits in total deposits stood at 6.9%, 41.3% and 42.8% respectively in mid‑January 2026, compared to 5.6%, 34.1% and 52.6% a year ago. The share of institutional deposits in total deposits of BFIs was 35.10% in mid‑January 2026, down slightly from 35.52% a year earlier.

Private sector credit from BFIs grew 3.6% (Rs 197.47 billion) to Rs 5,695.17 billion in the review period, compared to a 5.2% (Rs 265.56 billion) increase in the corresponding period of the previous year. On a year‑on‑year basis, private sector credit from BFIs rose 6.7% in mid‑January 2026.

The shares of private sector credit to non‑financial corporations and households stood at 62.7% and 37.3% respectively in mid‑January 2026, against 64.2% and 35.8% a year ago.

In the review period, private sector credit from commercial banks, development banks and finance companies increased 3.7%, 2.9% and 1.2% respectively.

Of the total outstanding credit of BFIs as of mid‑January 2026, 15.0% was against the collateral of current assets and 63.9% against land and building, compared to 14.5% and 64.9% respectively a year ago.

Sector‑wise, outstanding loans to the consumable sector rose 9.1%, construction 7.2%, transportation, communication and public sector 6.2%, industrial production 4.4%, insurance and fixed assets 1.1% and service industry 0.9%, while loans to the agriculture sector declined 1.1%.

By loan type, margin nature loans increased 8.3%, trust receipt (import) loans 7.8%, hire purchase loans 7.3%, cash credit loans 3.0%, demand and other working capital loans 2.9%, real estate loans (including residential personal home loans) 2.5% and term loans 2.4%, while overdraft loans decreased 3.3%.

On liquidity management, NRB absorbed a net liquidity of Rs 28,699.90 billion through various monetary instruments in the review period, compared to Rs 13,999.80 billion in the corresponding period of the previous year.

NRB injected liquidity of Rs 493.04 billion through the net purchase of $3.47 billion from the foreign exchange market, against Rs 340.06 billion through the net purchase of $2.52 billion a year ago. The central bank purchased Indian currency equivalent to Rs 292.91 billion through the sale of $2.06 billion in the review period.

Interbank transactions of BFIs amounted to Rs 470.29 billion on a turnover basis in the review period, down from Rs 837.98 billion in the corresponding period of the previous year.