Saving Deposits Surge 38% and Fixed Deposits Dip Slightly – Nepal’s Banking Sector Liquidity Diversifies

Published on October 27, 2025

According to the latest data from the Nepal Rastra Bank (NRB) mid-month survey, saving deposits in Nepal’s banking system surged by approximately 38 % year-on-year, reaching around Rs 2.77 trillion, while fixed deposits dipped slightly by about 5 %, signifying a shift in depositor behaviour and a diversification of liquidity within the banking sector.

The growth in saving deposits underscores improved household liquidity and stronger engagement with formal banking channels. It reflects factors such as rising remittance inflows, increased financial inclusion, and a preference for more accessible deposit products. At the same time, the slight contraction in fixed deposits suggests that depositors are either opting for shorter-term instruments or reallocating funds into savings accounts that offer greater flexibility or respond to changing interest-rate conditions.

From a banking sector perspective, this trend provides deeper structural resilience: as savings deposits rise, banks gain more stable funding sources, which can support their lending operations and liquidity management. The decline in fixed deposits might reduce interest-rate pressure on longer-tenure liabilities, while the increasing share of savings deposits may help banks maintain healthier asset-liability maturity profiles amidst a dynamic macro-monetary environment.

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.

Saving Deposits Surge 38% and Fixed Deposits Dip Slightly – Nepal’s Banking Sector Liquidity Diversifies

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