Other Liabilities of Banks Rise 11.5% to Rs 1.84 Trillion as Reserves and Debentures Expand Sharply

Published on October 27, 2025

According to the Nepal Rastra Bank (NRB) Mid-September 2025 “Other Depository Corporation Survey (y-o-y)”, other liabilities of the banking sector surged by 11.5% year-on-year, reaching Rs 1.84 trillion, up from Rs 1.65 trillion in the corresponding period of 2024. This sharp rise—an increase of Rs 189.7 billion—reflects strong growth in general reserves, debenture issuance, and miscellaneous financial obligations within the banking system.

The general reserves of banks jumped by 18.2%, reaching Rs 690.98 billion, compared to Rs 584.34 billion a year earlier. This significant expansion indicates improved profitability, higher retained earnings, and strengthened capital buffers across the banking sector. Similarly, debentures increased by 9.8% to Rs 194.5 billion, suggesting that banks are increasingly relying on long-term instruments to diversify funding sources and enhance financial stability amid evolving liquidity conditions.

In addition, other liabilities—which include payables, provisions, and accrued expenses—rose by 12.9%, signaling an increase in operational obligations as well as growth in contingent liabilities due to expanding credit operations. Paid-up capital also inched up by 1.9%, showing gradual capital strengthening across institutions.

Overall, the growth in “other liabilities” reflects a healthier, more diversified balance sheet structure among Nepali banks, aligning with the NRB’s regulatory emphasis on stronger reserves, long-term funding, and prudent liquidity management. This upward trajectory highlights banks’ readiness to absorb potential shocks while maintaining credit expansion momentum.

Other Liabilities of Banks Rise 11.5% to Rs 1.84 Trillion as Reserves and Debentures Expand Sharply

Nepal’s banking sector recorded an 11.5% rise in other liabilities, totaling Rs 1.84 trillion, driven by surging reserves and increased debenture issuance. The expansion reflects enhanced capital strength, stable funding diversification, and robust financial resilience across the banking industry.

Private Sector Credit Expands 7.4% Year-on-Year to Rs 5.7 Trillion – Lending Momentum Continues in FY 2025/26

Private sector credit grew by 7.4% year-on-year to Rs 5.7 trillion, reflecting a steady lending recovery across both business and household segments. The rise in corporate and consumer credit underscores renewed confidence in Nepal’s economy and the central bank’s balanced liquidity management approach.

Private Sector Credit Grows 1.6% While Fixed Deposits Decline Slightly – NRB Banking Data FY 2025/26

Private sector credit in Nepal increased by 1.6%, supported by corporate and household lending, while fixed deposits fell by 0.5% amid changing deposit preferences. This balance reflects a stable yet cautious financial environment, where liquidity management and capital strengthening remain central to NRB’s monetary framework.

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

Nepal’s total bank deposits reached Rs 7.29 trillion in mid-September 2025, growing slightly by 0.5%. Savings deposits remained strong, while demand deposits declined and fixed deposits eased. This pattern indicates a steady liquidity position, with growing household savings and cautious credit activity under NRB’s tighter monetary oversight.

Other Liabilities of Banks Rise 11.5% to Rs 1.84 Trillion as Reserves and Debentures Expand Sharply

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