NEPSE Heatmap

See the whole market at a glance.

Primary issues

Income & debt

Live market

Featured

Insights & Analysis

Expert reads and market education.

Explore

Read & learn

NEPSE Trading Network

The NEPSE Journal

Insights & Analysis

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

All Articles — Page 247

2793 posts

deposit1 min read
Deposits and Private Sector Credit Continue to Rise in Nepal’s Banking Sector
From FY 2019/20 to FY 2024/25, Nepal’s banking sector has shown strong momentum in deposit mobilization and private sector credit expansion. Total deposits rose significantly from Rs. 3,839.7 billion to Rs. 6,970.0 billion, reflecting a steady increase in public savings and trust in formal banking. Likewise, credit disbursed by BFIs to the private sector grew from Rs. 3,209.8 billion to Rs. 5,481.6 billion. While both indicators showed a slight contraction in FY 2023/24*, they rebounded sharply in FY 2024/25, indicating renewed financial activity. The growing gap between deposits and credit suggests increasing liquidity in the banking system, emphasizing the need for strategic credit deployment to stimulate economic growth.
Sandeep Chaudhary8 Jul, 2025
WAIR1 min read
Commercial Bank Interest Rate Trends Indicate Declining Cost of Credit in Nepal
As of mid-June 2024/25, Nepal’s commercial banking sector has experienced a notable decline in key interest rates, signaling improved liquidity and a softening in monetary conditions. The weighted average interbank rate remained stable at 2.99%, reflecting ease in short-term interbank borrowing. Meanwhile, the deposit rate fell significantly to 4.29% from 6.17% a year earlier, indicating reduced competition among banks for public deposits. Most notably, the lending rate dropped sharply to 7.99% from 10.15%, making credit more affordable for borrowers. This downward trend in interest rates across all categories suggests that commercial banks are operating under a more accommodative environment, likely in response to policy shifts aimed at stimulating economic growth.
Sandeep Chaudhary8 Jul, 2025
Tbills1 min read
Nepal T-Bill Rates Reflect Eased Liquidity Pressure in FY 2024/25
The interest rates of Nepal’s Treasury bills have shown a clear declining trend after peaking in FY 2021/22, indicating improved liquidity conditions and a more accommodative monetary policy. The 91-day T-bill rate, which had surged to 10.66% in 2021/22, dropped sharply to 6.35% in 2022/23 and further declined to 2.94% by mid-June 2025. Similarly, the 364-day T-bill rate fell from 10.19% in 2021/22 to 7.00% in 2022/23, then continued decreasing to 2.99% by mid-June 2025. This softening of short-term government security yields suggests reduced credit stress in the banking sector and signals stable inflation expectations and a surplus liquidity environment in the financial system.
Sandeep Chaudhary8 Jul, 2025
M22 min read
Monetary Indicators Reflect Gradual Stabilization in Nepal's Economy
As of mid-June 2025, Nepal’s key monetary indicators reflect gradual recovery and stabilization. Broad Money (M2) maintained consistent growth at 12%, showing stable liquidity in the economy. Narrow Money (M1) sharply rebounded to 15.7% after negative growth in the past two years, signaling improved public confidence and higher cash circulation. Domestic Credit growth remained modest at 6%, indicating cautious lending behavior, while Claims on the Private Sector improved to 8.2%, suggesting a slight pickup in private borrowing. Reserve Money growth rose to 12.1%, showing the central bank's efforts to ensure adequate base money to support monetary expansion. Overall, the data points toward a recovering monetary environment with renewed momentum in money supply and credit flow.
Sandeep Chaudhary8 Jul, 2025
USD1 min read
Nepal’s Foreign Exchange Reserves Surge to Historic High in FY 2024/25
As of mid-June 2025, Nepal’s gross foreign exchange reserves have witnessed a remarkable surge, reaching Rs. 2,569.4 billion (approx. USD 18.65 billion). This marks a substantial improvement from mid-June 2024, when reserves stood at Rs. 1,967.2 billion (USD 14.72 billion). The upward trend reflects consistent recovery and external sector strengthening, supported by increased remittance inflows, narrowing trade deficits, and improved current account performance.
Sandeep Chaudhary8 Jul, 2025
Remittance1 min read
Steady Rise in Remittance Bolsters Nepal's Foreign Earnings
Nepal's workers' remittances have shown a consistent upward trend over the past six years, playing a crucial role in supporting the country’s economy. Starting at Rs. 875 billion in 2019/20, remittances rose steadily each year—reaching Rs. 961.1 billion in 2020/21, Rs. 1,007.3 billion in 2021/22, and Rs. 1,240.7 billion in 2022/23. A significant jump was recorded in 2023/24 with remittances totaling Rs. 1,445.3 billion. Although the figure for mid-June 2023/24 dipped slightly to Rs. 1,327.5 billion, the remittance inflow surged again to a record-high Rs. 1,532.9 billion by mid-June 2024/25. This steady growth reflects increased labor migration, improved remittance channels, and rising global demand for Nepali workers.
Sandeep Chaudhary8 Jul, 2025
Advertisement
Export1 min read
Nepal’s Current Account Rebounds Sharply Amid Continued External Sector Improvement
Nepal’s current account position has shown a dramatic reversal in recent years. From persistent deficits peaking at Rs. 623.4 billion in 2021/22, the balance steadily recovered to a modest deficit of Rs. 46.6 billion in 2022/23. This positive momentum continued strongly, as the account turned into a surplus of Rs. 221.3 billion in 2023/24. As of mid-June 2024/25, the surplus further expanded to Rs. 307.3 billion. This turnaround reflects improved remittance inflows, moderated import growth, and a more favorable external trade environment. The consistent surplus since FY 2023 signals a strengthening of Nepal’s external sector and a more stable macroeconomic foundation.
Sandeep Chaudhary8 Jul, 2025
BOP1 min read
Nepal's Balance of Payments Shows Strong Recovery Despite Past Deficit
Nepal’s Balance of Payments (BOP) has shown a strong and consistent recovery over the past few fiscal years. After recording a sharp deficit of Rs. 252.4 billion in FY 2021/22, the situation reversed positively, with the BOP reaching a surplus of Rs. 285.8 billion in FY 2022/23. This upward trend continued in FY 2023/24, with an annual surplus of Rs. 502.5 billion. By mid-June 2025, the BOP surplus stood at Rs. 491.4 billion, indicating sustained improvement in Nepal’s external sector. The rebound reflects improved remittance inflows, controlled imports, and stronger foreign exchange reserves, contributing to overall macroeconomic stability.
Sandeep Chaudhary8 Jul, 2025
Export1 min read
Nepal's External Sector Rebounds in Mid-June 2024/25 with Record Export Growth
By mid-June 2024/25, Nepal’s exports jumped by 77.8% to Rs. 247.6 billion, while imports rose 13.1% to Rs. 1,644.8 billion. This marks a strong recovery in export performance after years of decline, signaling improving trade dynamics despite a continued trade deficit.
Sandeep Chaudhary8 Jul, 2025
Inflation1 min read
Nepal's Inflation Falls to 2.72% in Mid-June 2025, Lowest in Five Years
Nepal’s year-on-year CPI inflation has steadily declined from a peak of 8.08% in 2021/22 to 2.72% by mid-June 2025, the lowest in five years. Annual CPI fell to 3.57% in 2023/24, showing strong inflation control. The consistent drop reflects improved economic stability and effective monetary policy.
Sandeep Chaudhary8 Jul, 2025

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 247

Deposits and Private Sector Credit Continue to Rise in Nepal’s Banking Sector

Commercial Bank Interest Rate Trends Indicate Declining Cost of Credit in Nepal

Nepal T-Bill Rates Reflect Eased Liquidity Pressure in FY 2024/25

Monetary Indicators Reflect Gradual Stabilization in Nepal's Economy

Nepal’s Foreign Exchange Reserves Surge to Historic High in FY 2024/25

Steady Rise in Remittance Bolsters Nepal's Foreign Earnings

Nepal’s Current Account Rebounds Sharply Amid Continued External Sector Improvement

Nepal's Balance of Payments Shows Strong Recovery Despite Past Deficit

Nepal's External Sector Rebounds in Mid-June 2024/25 with Record Export Growth

Nepal's Inflation Falls to 2.72% in Mid-June 2025, Lowest in Five Years

NEPSEtrading

Primary issues

Income & debt

Live market

Read & learn

NEPSE Trading Network

Insights & Analysis

All Articles — Page 247

Deposits and Private Sector Credit Continue to Rise in Nepal’s Banking Sector

Commercial Bank Interest Rate Trends Indicate Declining Cost of Credit in Nepal

Nepal T-Bill Rates Reflect Eased Liquidity Pressure in FY 2024/25

Monetary Indicators Reflect Gradual Stabilization in Nepal's Economy

Nepal’s Foreign Exchange Reserves Surge to Historic High in FY 2024/25

Steady Rise in Remittance Bolsters Nepal's Foreign Earnings

Nepal’s Current Account Rebounds Sharply Amid Continued External Sector Improvement

Nepal's Balance of Payments Shows Strong Recovery Despite Past Deficit

Nepal's External Sector Rebounds in Mid-June 2024/25 with Record Export Growth

Nepal's Inflation Falls to 2.72% in Mid-June 2025, Lowest in Five Years