KATHMANDU, Aug 19: The deposit collection of banks and financial institutions (BFIs) increased by 18.34 percent in the last fiscal year, compared to the amount collected in the previous fiscal year.  

The annual macroeconomic report unveiled by Nepal Rastra Bank (NRB) on Sunday, shows that the BFIs collected deposits of about Rs 742 billion, up from Rs 627 billion in the review period of the previous fiscal year (FY).  

According to the NRB, the share of individual deposit collections compared to institutional depositors grew in the last FY. As of mid-July 2024, institutional deposits comprised 36.2 percent of the total deposits held by the BFIs. The figure in the same period of the previous fiscal year was 36.6 percent.

Similarly, the BFIs’ private sector loans increased by 5.8 percent in the review period. It escalated to Rs 276 billion from Rs 175 billion. In the segment, the lending by commercial banks increased by 5.8 percent, while those of development banks grew by five percent and 7.7 percent, respectively.

Categorically, the BFIs had 66.5 percent of their loan portfolio in the realty sector, down from 68 percent. They issued 13.2 percent of their loans against moveable assets (both agricultural and non-agricultural in nature), which was more than 11.6 percent in the review period.

The loan issued in the agriculture sector grew by 0.9 percent, the manufacturing sector grew by 8.8 percent, and those in transport and communication and public services increased by 16.7 percent. Likewise, the lending to the wholesale and retail businesses increased 1.5 percent and that to service sectors increased by 6.2 percent.

In the review period, the BFIs’ margin lending declined by 18.1 percent, hire-purchase declined by 22 percent and working capital loans declined by 17.6 percent.    

 
• BFI
 
• deposits