Deposit collection among banks and financial institutions decline by 2%

KATHMANDU: Deposit mobilisation at Banks and Financial Institutions (BFIs) has decreased during the first month of the current fiscal year 2022/23.

Deposit collection at BFIs decreased by 2 per cent in the review period compared to a decrease of 1.6 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 8.6 per cent in mid-August 2022. The share of demand, saving, and fixed deposits in total deposits stood at 7.2 per cent, 26.9 per cent and 55.8 per cent respectively in mid-August 2022. Such shares were 7.8 per cent, 34.3 per cent and 49.5 per cent respectively a year ago.

The share of institutional deposits in total deposit of BFIs stands at 37.4 per cent in mid-August 2022.

Such a share was 41.4 per cent in mid-August 2021. Private sector credit from BFIs decreased by 0.05 per cent in the review period compared to an increase of 1.2 per cent in the corresponding period of the previous year. On y-o-y basis, credit to the private sector from BFIs increased by 11.8 per cent in mid-August 2022.