The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
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.
In FY 2025/26, NRB’s capital and reserves rose sharply by 33.1 percent to Rs 681.3 billion, driven by foreign reserve gains, gold appreciation, and stable income growth. This expansion underlines a robust financial position, enabling NRB to strengthen monetary control, stabilize liquidity, and sustain Nepal’s external financial health.
In Mid-September 2025, Nepal’s Net Foreign Assets soared by Rs 697.5 billion (34.9%), driven by rising reserves and gold holdings, while Net Domestic Assets declined by Rs 596.7 billion (–59.5%) due to tight liquidity. The overall central bank balance sheet grew by 32.7%, showcasing Nepal’s improved external strength amid controlled domestic monetary conditions.
In Mid-September 2025, Nepal’s Net Foreign Assets surged by Rs 116.8 billion (4.6%) to Rs 2.69 trillion, showing strong foreign reserve accumulation. Meanwhile, Net Domestic Assets fell by Rs 175.2 billion (–12.9%), reflecting tighter domestic liquidity and reduced central bank credit expansion.
In Mid-September 2025, NRB’s capital and reserves rose by Rs 87.38 billion (14.7%), reaching Rs 681.3 billion, driven by valuation gains and strong foreign asset accumulation. This reflects a healthier central bank balance sheet, improved external stability, and greater resilience in Nepal’s financial system.
In Mid-September 2025, NRB data revealed that general government deposits increased by Rs 124.9 billion (95.5%) year-on-year, reaching Rs 255.6 billion. The surge reflects stronger fiscal consolidation and improved cash management but has also contributed to tightening liquidity in the financial system as funds remain parked with the central bank instead of circulating through commercial banks.