The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
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.
Nepal’s total bank deposits reached Rs 7.29 trillion, up 12.5% year-on-year, driven by strong growth in saving and call deposits, remittance inflows, and increased financial inclusion. This steady expansion reinforces Nepal’s financial stability and depositors’ trust in the banking sector.
Nepal’s banking sector assets rose by 1.9% to Rs 9.16 trillion, highlighting sustained financial stability, strong depositor confidence, and steady loan growth. The expansion reflects a resilient financial system supported by NRB’s effective liquidity and capital management policies.
Commercial banks’ reserves with NRB dropped by 14.2%, underscoring a tighter liquidity environment in Nepal’s banking system as NRB absorbs surplus funds and redirects monetary flows.
Nepal’s savings deposits climbed 3.7% to Rs 2.77 trillion, underscoring enhanced household liquidity, steady remittance inflows, and growing confidence in the banking sector. This rise reflects the nation’s gradual financial deepening and preference for liquid, low-risk savings products.
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.
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.
In FY 2025/26, the Deposit Auction and Standing Deposit Facility soared by 183.5% to Rs 671.7 billion, signaling NRB’s decisive monetary action to absorb surplus liquidity amid expanding reserves. The move reflects tighter liquidity management, stable interest rate targeting, and a proactive central bank stance in preserving financial stability.
In FY 2025/26, NRB’s Net Foreign Assets increased by Rs 697.5 billion (34.9%), reaching Rs 2.69 trillion, while Net Domestic Assets fell by 59.5% due to lower government borrowing and credit contraction. This demonstrates Nepal’s growing reliance on foreign reserves to support monetary stability and liquidity management amid controlled domestic asset exposure.
In mid-September 2025, Nepal’s reserve money expanded by 10.1 percent, supported by higher currency circulation, increased bank reserves, and robust foreign asset accumulation. The trend highlights a stable and liquidity-rich monetary environment, reinforcing NRB’s ability to manage liquidity and support credit growth in the financial sector.