Credit Growth Outpaces Deposit Collection in Banks Over Eight Months

Kathmandu – In the first eight months of the current fiscal year (Shrawan to Falgun), commercial banks in Nepal have witnessed a deposit growth of NPR 282 billion, reflecting a 4.90% increase compared to the end of the previous fiscal year (Ashar). Total deposits, which stood at NPR 5.755 trillion in Ashar, have now reached NPR 6.037 trillion by Falgun.

During the same period, 20 commercial banks collectively disbursed NPR 280 billion in new loans, marking a 6.12% increase from Ashar. The total outstanding loans, which were NPR 4.571 trillion in Ashar, have surged to NPR 4.851 trillion in Falgun.

This trend indicates that credit expansion has outpaced deposit growth over the past eight months. Currently, banks have around NPR 575 billion in loanable funds.

Meanwhile, Governor Maha Prasad Adhikari of Nepal Rastra Bank has urged the public to conduct financial transactions only through regulated banks and financial institutions. Speaking at the ‘Global Money Week’ event in Kathmandu, he emphasized the importance of saving and investing through licensed financial entities for better financial security.