Deposit collection growth of banks remain tepid in nine months

KATHMANDU: Growth of deposit collection at the banks and financial institutions (BFIs) has remained low during the first nine months of the current fiscal year 2021/22 compared to the same period a year ago.

Deposit collection by BFIs has increased by 5.1 per cent in the review period compared to an increase of 13.7 per cent in the corresponding period of the previous year, according to a macroeconomic and financial report of Nepal Rastra Bank (NRB).

On y-o-y basis, deposits at BFIs expanded by 12.2 per cent in mid-April 2022.

The share of demand, saving, and fixed deposits in total deposits stands at 8.7 per cent, 28.7 per cent and 56.1 per cent respectively in mid-April 2022.

The share of institutional deposits in total deposit of BFIs stands at 38.6 per cent in mid-April 2022. That figure was 41.7 per cent in mid-April 2021.

Private sector credit from BFIs increased by 13.5 per cent in the review period compared to an increase of 22.5 per cent in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased by 17.8 per cent in mid-April 2022.