Bank Deposits in Nepal Rise 12.5% to Rs. 7.2 Trillion: Saving Accounts Lead the Growth

Nepal’s banking system has continued to expand its deposit base, reaching Rs. 7.2 trillion in mid-August 2025, marking a 12.5 percent year-on-year growth, according to the latest Other Depository Corporation Survey by the Nepal Rastra Bank (NRB). The data reveals that savings deposits remain the primary driver, increasing sharply by 39.2 percentcompared to the same month last year.

Within the savings category, residential deposits surged by Rs. 752 billion to Rs. 2.67 trillion, reflecting growing household savings amid improving financial access and remittance inflows. Non-residential savings deposits also climbed by 44.1 percent, signaling stronger engagement from diaspora and foreign workers.

Fixed deposits, which had been the dominant form of savings in previous years, declined by 5.3 percent to Rs. 3.48 trillion as depositors shifted toward more flexible savings and call accounts. This shift highlights changing liquidity preferences amid fluctuating interest rates and market uncertainty.

Similarly, call deposits jumped 34.3 percent to Rs. 566 billion, suggesting that institutions and businesses are maintaining more funds in short-term accounts for liquidity management. Demand deposits also rose significantly by 26.6 percent, indicating renewed cash flow across businesses and individuals.

Economists suggest that this overall deposit expansion reflects confidence recovery in the banking system, coupled with rising remittance inflows and stable inflation. However, they caution that the decline in fixed deposits could pose challenges for long-term loan funding stability if the trend persists.