Deposit at BFIs increases by 4.8 per cent in first four months

Kathmandu: Deposits at Banks and Financial Institutions (BFIs) increased by 4.8 per cent in the first four months of the current fiscal year compared to the growth of 3.9 per cent in the corresponding period of the previous year.

On year-on-year (Y-o-Y) basis, deposits at BFIs expanded by 14.9 per cent in mid-November 2017.

Out of the total deposits at the BFIs, the share of demand deposits decreased from 8.2 per cent to 7.9 per cent and saving deposits from 44 per cent to 36.2 per cent in mid-November 2017 compared to a year ago, according to the report of Nepal Rastra Bank (NRB).

However, the share of fixed deposits increased to 42.3 per cent from 31.2 per cent a year ago.

Credit to the private sector from BFIs increased by 6.7 per cent in the review period compared to a rise of 7.4 per cent in the corresponding period of the previous year.

In the review period, private sector credit from commercial banks, development banks and finance companies increased by 6.5 per cent, 10.2 per cent and 1.1 per cent respectively.

Of the total outstanding credit of BFIs, 61.2 per cent is against the collateral of land and building and 14.5 per cent against the collateral of current assets (such as agricultural and non-agricultural products).

Trust receipt loan extended by commercial banks increased by 43.6 per cent to Rs. 92.64 billion in the review period compared to an increase of 7.4 per cent in the corresponding period of the previous year, report said.

In the review period, hire purchase loan increased by 3.6 per cent and overdraft loan increased by 2.9 per cent.

Similarly, real estate loan (including residential personal home loan) grew by 5.5 per cent in the review period.