Deposits at banks and financial institutions in Nepal increased by Rs 72.80 billion, or 0.9 percent, during the first two months of fiscal year 2083/84, according to a Nepal Rastra Bank report. The same period also saw a sharp rise in monthly loan investment, from Rs 23.58 billion in Shrawan to Rs 93.52 billion in Bhadra, while interest rates on loans declined.
Deposits increase by Rs 72.80 billion
The deposit growth recorded across Shrawan and Bhadra points to an increase in funds held by Nepal’s banks and financial institutions during the opening months of the fiscal year. The rise amounted to Rs 72.80 billion, equivalent to 0.9 percent, the central bank’s report said. The figures cover the first two months of FY 2083/84 and do not provide, in the information available, a breakdown by institution or type of deposit.
Deposits are a key source of funding for banks and financial institutions. The increase therefore provides an important measure of how their funding base changed over the period. However, the report figures included in the published account do not specify what drove the growth, whether it was concentrated in particular institutions, or how it was divided among different deposit categories. No further cause for the increase was identified in the information reported.
Monthly loan investment rises in Bhadra
Loan investment rose from Rs 23.58 billion in Shrawan to Rs 93.52 billion in Bhadra, indicating a substantially higher monthly figure in the second month of the fiscal year. The difference between the two reported amounts is Rs 69.94 billion. Bhadra’s figure was nearly four times the amount recorded in Shrawan.
The monthly figures show that loan investment picked up between the two months, but they do not, on their own, give a complete picture of total lending over the period. The reported information does not state the overall outstanding loan balance, identify the sectors receiving credit, or give a breakdown by borrower. It also does not explain the reasons behind the increase from Shrawan to Bhadra.
Loan interest rates decline
The report also noted that interest rates on loans declined during the period. It did not provide specific rates or quantify the size of the reduction in the figures available. The reported direction of change was downward, alongside the increase in deposits and the rise in monthly loan investment.
The deposit, lending and interest-rate figures together describe changes in the banking sector during the first two months of FY 2083/84. They do not establish a direct cause-and-effect relationship between the trends. The information reported by Global Aawaj, citing Nepal Rastra Bank, provides the headline figures but does not include further detail on the factors influencing them.
