Total Banking Sector Assets Increase by 1.9% to Rs 9.16 Trillion – Nepal’s Financial Stability Maintained

Published on October 27, 2025

According to the Nepal Rastra Bank’s (NRB) Mid-September 2025 “Other Depository Corporation Survey”, the total assets of Nepal’s banking sector increased by 1.9%, reaching Rs 9.16 trillion, compared to Rs 8.99 trillion in mid-July 2025. This steady growth in the financial sector’s balance sheet underscores Nepal’s maintained financial stability and moderate economic recovery under NRB’s prudent monetary management policies.

The asset growth was primarily supported by an increase in loans and advances, which rose by 1% to Rs 7.14 trillion, reflecting consistent private sector borrowing despite subdued investment sentiment. Similarly, other assets grew by 10.7%, indicating a rise in banks’ diversified holdings and balance sheet optimization. On the liabilities side, total deposits expanded by 0.5% to Rs 7.29 trillion, suggesting that depositor confidence remains firm, bolstered by stable remittance inflows and improved liquidity in the system.

The rise in total assets also coincides with an 8.5% increase in other liabilities, driven by higher general reserves and debenture issuance, signaling that banks are strengthening their capital adequacy and long-term funding sources. NRB’s policy of maintaining adequate liquidity buffers while encouraging credit flow to productive sectors appears to have contributed to a balanced expansion of both assets and liabilities.

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.

Total Banking Sector Assets Increase by 1.9% to Rs 9.16 Trillion – Nepal’s Financial Stability Maintained

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

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