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

NRB data shows “other assets” of banks and financial institutions surged 52.7% to Rs. 1.26 trillion in mid-August 2025, driven by deferred interest, provisioning, and growing investment holdings. Experts see this as both a sign of prudential regulation and a warning of slower credit-driven growth.

Deposits of financial institutions with NRB rose 23 percent to Rs. 337.6 billion in August 2025, reflecting strong liquidity conditions and cautious credit expansion. Experts say the trend indicates both financial stability and underutilization of banking liquidity.

Foreign liabilities of Nepal’s banks fell by 27 percent to Rs. 34.7 billion in mid-August 2025 as financial institutions reduced external borrowings amid strong domestic liquidity and a stable foreign reserve environment.

Total loans and advances by banks and financial institutions reached Rs. 7.06 trillion in August 2025 — up 5.9 percent annually — as cautious lending and moderate demand shaped Nepal’s evolving credit landscape.