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High Share of Personal Deposits in the Banking Sector: Nepal Rastra Bank Data

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High Share of Personal Deposits in the Banking Sector: Nepal Rastra Bank Data

According to Nepal Rastra Bank, banks and financial institutions collected a total of NPR 742 billion in deposits during the last fiscal year, with personal deposits accounting for a significant portion.

Key Highlights:

Growth Rates of Deposits and Loans:

  • Deposit Growth Rate: 13%

  • Loan Growth Rate: 5.3%

  • The target for private sector credit expansion was 11.5%, but only half of it was achieved.

Share of Personal and Institutional Deposits:

  • Personal deposits accounted for 61% of the total deposits, while institutional deposits accounted for 39%.

  • In commercial banks, out of a total of NPR 5,756 billion in deposits, the public held NPR 3,520 billion (approximately 61%).

Status of Personal Deposits in Various Banks:

  • Nepal Bank: Total deposits of NPR 283 billion, of which NPR 226 billion (79.77%) are personal.

  • Machhapuchchhre Bank: Total deposits of NPR 161 billion, with 71.98% (NPR 116 billion) being personal.

  • Citizens Bank: Total deposits of NPR 191 billion, of which 68.51% (NPR 131 billion) are personal.

  • Global IME Bank: Total deposits of NPR 504 billion, with NPR 334 billion (68%) being personal.

  • Laxmi Sunrise Bank: Total deposits of NPR 333 billion, of which NPR 220 billion (68%) are personal.

  • Banks such as Sanima, Rastriya Banijya, Siddhartha, NMB, Agricultural Development, Everest, and Nepal Investment Mega Bank have a personal deposit share of over 60%.

Banks with Lower Shares of Personal Deposits:

  • Nepal SBI Bank: Total deposits of NPR 175 billion, with only 50.86% being personal.

  • Himalayan Bank: Only 52.02% of total deposits are personal.

Other Key Statistics:

  • Major banks like Nabil, Kumari, NIC Asia, and Prime Commercial Bank have a lower-than-average share of personal deposits.

  • Nepal Bank has the highest share of personal deposits at 79.77%.

Conclusion:

According to data from Nepal Rastra Bank, most commercial banks have a high share of personal deposits, which contributes to their financial stability. However, some banks show a comparatively lower share of personal deposits, which may pose a risk for those banks.

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