KATHMANDU: Deposits in banks and financial institutions increased by Rs 69 billion during the first two months of the current fiscal year.
According to Nepal Rastra Bank, total deposits rose from Rs 8.311 trillion at the end of Ashar to Rs 8.380 trillion by the end of Bhadra. Over the past year, deposits have grown by Rs 858 billion, representing an increase of more than 11 percent.
While deposits have grown significantly, credit disbursement remains sluggish. Central bank data shows that credit flow, which stood at Rs 5.674 trillion at the end of Ashoj last year, increased by only Rs 347 billion to reach Rs 6.021 trillion over the year. This marks a growth rate of just 6.11 percent for the period.
However, data from the first two months of the current fiscal year suggests a gradual improvement, with credit disbursement rising by Rs 63 billion alongside the increase in deposits. The private sector noted that credit demand remains low, leaving excess liquidity in the banking system. Despite interest rates falling to historic lows, business leaders emphasize that boosting investor confidence is essential to improve the investment climate and increase credit uptake.
