Bank Deposits in Nepal Rise Marginally by 0.5% to Rs 7.29 Trillion – NRB Mid-September 2025 Report

According to the Nepal Rastra Bank’s (NRB) Mid-September 2025 Other Depository Corporation Survey, total deposits held within Nepal’s banking system rose marginally by 0.5% to reach Rs 7.29 trillion, compared to Rs 7.26 trillion in mid-July 2025. This modest rise indicates a stabilized deposit base amid controlled liquidity conditions and restrained credit expansion.

The data reveals that savings deposits remained the primary driver of deposit growth, expanding by 3.7% to Rs 2.77 trillion, supported by strong household savings behavior and consistent remittance inflows. Fixed deposits, however, slightly declined by 0.5%, reflecting depositors’ preference for shorter-term or more liquid holdings amid moderate interest rate adjustments. Similarly, demand deposits fell sharply by 18.2% to Rs 423.27 billion, suggesting lower short-term transactional balances, while call deposits grew by 8.6%, highlighting flexible cash management trends among corporates and financial institutions.

From a structural perspective, residential deposits continued to dominate, accounting for over 95% of the total, while non-residential (NRN) deposits saw only limited growth. Meanwhile, foreign liabilities of banks decreased by 12.3%, and general reserves of the banking system surged by 12%, indicating higher capital retention and balance sheet strengthening within the banking sector.

The overall rise in deposits, despite reduced demand deposits, reflects a cautious but stable financial environment. The NRB’s liquidity management measures — including its standing deposit facility and deposit auctions — have contributed to maintaining a balance between liquidity absorption and stability of deposits.