Nepal Deposit Growth Trend 2026
Bank deposits are the lifeblood of Nepal's financial system. The NRB's 8-month report for FY 2025/26 shows total BFI deposits growing to Rs. 7,780,242 million by mid-March 2026 — up 6.52% from Rs. 7,304,087M at mid-July 2025.
Deposit Breakdown by Source
| Source | Jul 2025 (Rs. M) | Mar 2026 (Rs. M) | Growth |
|---|---|---|---|
| Individuals | 4,560,133 | 4,970,078 | +8.99% |
| Insurance Companies | 663,428 | 666,234 | +0.42% |
| Non-Govt Institutions | 487,087 | 446,579 | -8.32% |
| Govt Institutions | 373,432 | 331,951 | -11.13% |
| Non-Profit Organizations | 199,824 | 208,498 | +4.34% |
| EPF | 182,230 | 181,363 | -0.48% |
| Resident FCY Deposits | 132,916 | 202,308 | +52.21% |
| Total | 7,304,087 | 7,780,242 | +6.52% |
Key Observations
1. Individuals Drive Deposit Growth: Individual deposits (Rs. 4,970,078M) account for nearly 64% of all deposits and grew +8.99%. This is largely driven by remittance inflows — with Rs. 1.45 trillion in remittances flowing in, a significant portion enters the banking system as household deposits.
2. FCY Deposits Surging: Resident foreign currency deposits jumped +52.21% — from Rs. 132,916M to Rs. 202,308M. This reflects expectations of further NPR depreciation, with depositors preferring to hold dollars.
3. Government Deposits Declining: Government institutional deposits fell -11.13%, possibly reflecting increased spending or cash management challenges.
4. Non-Govt Institutions Down: Corporate/institutional deposits fell -8.32%, which could indicate businesses drawing down cash for operations or investment.
Deposits and Interest Rates
Deposit rates fell from 4.02% (Aug) to a low of 3.66% (Dec) before recovering to 4.54% (Mar). The rate recovery from January should help sustain deposit growth, as higher rates attract more savings.
Conclusion
Nepal's deposit growth of 6.52% is healthy and primarily remittance-driven through individual deposits. The surge in FCY deposits signals currency depreciation expectations. The recovery in deposit rates from January should support continued growth through the rest of FY 2025/26.