Bank Deposits Shrink While Private Sector Credit Grows NPR 2.36 Billion, NRB Data Shows

Kathmandu — Deposits at banks and financial institutions fell 0.3% (NPR 2.07 billion) to NPR 8.256 trillion in the first month of fiscal year 2083/84 (mid-July to mid-August 2026), according to data released by Nepal Rastra Bank.

In the same period last fiscal year, deposits had declined 0.8% (NPR 5.579 billion). On a year-on-year basis, deposits at banks and financial institutions increased 14.5% as of mid-August 2026.

As of mid-August 2026, current, savings and fixed deposits accounted for 7.3%, 47.6% and 35.6% of total deposits, respectively, compared with 5.6%, 37.5% and 48.4% a year earlier. Institutional deposits accounted for 33.3% of total deposits, down from 35.1% a year earlier.

Credit Growth

Credit extended by banks and financial institutions to the private sector rose 0.4% (NPR 2.358 billion) during the review period to NPR 5.880 trillion. Such credit had declined 0.1% (NPR 293 million) in the same period last year.

On a year-on-year basis, private-sector credit increased 7.0% as of mid-August 2026. Non-financial institutional borrowers accounted for 62.3% of private-sector credit, while individuals and households accounted for 37.7%, compared with 62.7% and 37.3%, respectively, a year earlier.

During the review period, credit extended by commercial banks and finance companies increased 0.5% and 0.1%, respectively, while credit from development banks declined 0.3%.

Of total outstanding credit, 15.3% was secured by current assets, including agricultural and non-agricultural goods, while 63.0% was secured by real estate. A year earlier, the corresponding shares were 14.8% and 64.4%.

Credit to the mining sector increased 3.7% in the first month of FY2083/84, followed by metal products, machinery and electrical equipment manufacturing and repair at 3.0%, construction at 2.1%, service industries at 1.8%, transport, communications and public utilities at 1.2%, transport equipment manufacturing and repair at 0.8%, wholesale and retail trade at 0.3%, and industrial production at 0.3%.

Meanwhile, credit to finance, insurance and real estate declined 5.1%, agriculture 0.9%, and consumer lending 0.6%.

By loan type, term loans increased 1.5%, trust receipt (import) loans 1.0%, real estate loans, including personal home loans, 0.7%, and hire-purchase loans 0.1%. Lending to deprived sectors declined 7.3%, overdraft loans 2.6%, cash credit loans 1.1%, and demand and other working-capital loans 0.5%.