Private Sector Credit Grows 1.6% While Fixed Deposits Decline Slightly – NRB Banking Data FY 2025/26

Published on October 27, 2025

According to the Nepal Rastra Bank’s (NRB) Mid-September 2025 “Other Depository Corporation Survey”, private sector credit expanded moderately by 1.6%, reaching Rs 5.70 trillion, compared to Rs 5.62 trillion in mid-July 2025. This growth, although slower than in previous years, highlights a cautious credit environment as banks maintained conservative lending practices amid tight liquidity and subdued investment demand.

Within the total, loans to non-financial private corporations grew by 0.9%, while credit to households rose slightly by 0.9% as well. This steady increase suggests stable but limited momentum in private investment and consumer borrowing, reflecting the current phase of economic recovery and controlled credit expansion policies under NRB’s prudential regulations.

On the deposit side, fixed deposits declined slightly by 0.5% to Rs 3.49 trillion, compared to Rs 3.51 trillion in mid-July 2025. The reduction indicates that depositors are shifting toward more liquid instruments such as savings and call deposits, influenced by interest rate adjustments and flexible liquidity conditions. Meanwhile, savings deposits rose by 3.7% to Rs 2.77 trillion, underscoring stable household savings behavior and remittance-driven inflows.

The overall banking sector assets grew by 1.9%, reflecting modest credit expansion and increasing general reserves. The rise in reserves by 12% to Rs 691 billion signals banks’ efforts to strengthen capital buffers in compliance with regulatory standards and to cushion against potential macroeconomic risks.

Other Liabilities of Banks Rise 11.5% to Rs 1.84 Trillion as Reserves and Debentures Expand Sharply

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.

Private Sector Credit Expands 7.4% Year-on-Year to Rs 5.7 Trillion – Lending Momentum Continues in FY 2025/26

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.

Private Sector Credit Grows 1.6% While Fixed Deposits Decline Slightly – NRB Banking Data FY 2025/26

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.

Bank Deposits in Nepal Rise Marginally by 0.5% to Rs 7.29 Trillion – NRB Mid-September 2025 Report

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.

Private Sector Credit Grows 1.6% While Fixed Deposits Decline Slightly – NRB Banking Data FY 2025/26

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Private Sector Credit Grows 1.6% While Fixed Deposits Decline Slightly – NRB Banking Data FY 2025/26

Bank Deposits in Nepal Rise Marginally by 0.5% to Rs 7.29 Trillion – NRB Mid-September 2025 Report