
The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.

Liquid funds rose 15.9% to Rs 737.3 billion, driven by higher balances abroad and at NRB, marking a healthier liquidity position across Nepal’s banking system. The growth reflects strong foreign exchange inflows, stable monetary operations, and resilient financial intermediation.

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.

Saving deposits grew strongly by around 38 %, reaching Rs 2.77 trillion, while fixed deposits fell slightly by about 5 %, indicating diversified liquidity management in Nepal’s banking sector and a shift in depositor preference toward more liquid and flexible products

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.