KATHMANDU: Deposits in banks and financial institutions experienced a decline during the first month of the current fiscal year 2083/84.
According to the current macroeconomic and financial situation report released by Nepal Rastra Bank on Friday, total deposits fell by 0.3 percent, or Rs 20.71 billion, in Shrawan, bringing the total to Rs 8.256 trillion. In the same period last year, deposits had decreased by 0.8 percent. On a year-on-year basis, however, total deposits grew by 14.5 percent as of the end of Shrawan 2083.
Despite the slight drop in deposits, lending to the private sector saw an increase. During the review period, private sector credit rose by 0.4 percent, or Rs 23.58 billion, reaching Rs 5.880 trillion. In contrast, private sector credit had declined by 0.1 percent, or Rs 2.93 billion, during the same period the previous year. On a year-on-year basis, credit to the private sector has increased by 7 percent.
The composition of deposits has shifted, with the share of savings deposits increasing while the share of fixed deposits decreased. As of the end of Shrawan, current, savings, and fixed deposits accounted for 7.3 percent, 47.6 percent, and 35.6 percent of total deposits, respectively. The share of institutional deposits also dropped to 33.3 percent from 35.1 percent a year earlier.
The portion of loans secured by real estate has also declined, falling to 63 percent of total credit from 64.4 percent the previous year. Sector-wise, loans to mining, construction, and service industries saw growth, while credit to the finance, insurance, real estate, agriculture, and consumer sectors recorded a decline, according to the central bank’s data.
