The deposits mobilisation at Banks and Financial Institutions (BFIs) increased by 7.2 per cent during the first nine months of the current fiscal year as compared to the same period last fiscal year.
According to a current macroeconomic and financial report of Nepal Rastra Bank (NRB) made public recently, the deposits at BFIs increased by Rs. 409.04 billion in the review period compared to an increase of Rs. 355.89 billion (7 per cent) in the corresponding period of the previous year.
On y-o-y basis, deposits at BFIs expanded 12.5 per cent in mid-April 2024. The share of demand, saving and fixed deposits in total deposits stood at 5.2 per cent, 29.1 per cent and 58.9 per cent respectively in mid-April 2024.
Such shares were 8 per cent, 25.7 per cent and 60.1 per cent respectively a year ago. The share of institutional deposits in total deposits of BFIs stood at 35.7 per cent in mid-April 2024. Such a share was 36.3 per cent in mid-April 2023.
Similarly, private sector credit from BFIs increased by Rs. 222.21 billion (4.6 per cent) in the review period compared to an increment of Rs. 161.98 billion (3.5 per cent) in the corresponding period of previous year.
On y-o-y basis, credit to the private sector from BFIs increased 4.9 per cent in mid-April 2024. The shares of private sector credit from BFIs to non-financial corporation and household stood at 62.7 per cent and 37.3 per cent respectively in mid-April 2024.
Such shares were 64.1 per cent and 35.9 per cent a year ago. In the review period, private sector credit from commercial banks, development banks and finance companies increased by 4.7 per cent, 4.2 per cent and 5.5 per cent respectively, said the NRB.
In the review period, out of the total outstanding credit of the BFIs, 11.4 per cent was against the collateral of current assets (such as agricultural and non-agricultural products) and 67.6 per cent against land and building. Such ratios were 12.3 per cent and 66.9 per cent respectively a year ago.
In the review period, outstanding loan of BFIs to the agriculture sector increased by 0.7 per cent, production sector by 8.8 per cent, construction sector by 8.7 per cent, transportation, communication and public sector by 11.0 per cent, wholesale and retail sector by 3.8 per cent, service industry sector by 4.9 per cent and consumable sector by 5.7 per cent.
In the review period, term loan extended by BFIs increased by 17.8 per cent, cash credit loan by 27.4 per cent, real estate loan (including residential personal home loan) by 6.9 per cent, and margin nature loan 12.9 per cent.
However, overdraft loan extended by BFIs decreased by 43.7 per cent (mainly due to reclassification of loan from the last year), trust receipt (import) loan decreased by 0.2 per cent and hire purchase loan by 16.9 per cent.
