Banking risk decline as per NRB; deposits of BFI’s reached to Rs 282.06 billion
ShareSansar, August 26;
Current Macroeconomic Situation of Nepal report published by NRB (Based on Annual Data of 2014/2015) discloses the rising percent of deposits in BFIs in the FY 2014/15. BFIs deposits in the review year increased by 20.1 percent (Rs 282.06 billion) compared to an increase of 18.4 percent (Rs 218.68 billion) in the previous year.
Deposits of commercial banks and development banks increased by 21.4 percent and 15.2 percent respectively while that of finance companies decreased by 0.6 percent in the review year compared to the respective increase of 17.8 percent, 29.1 percent and 5.7 percent in the previous year.
In the review year the loan and advances of BFIs increased by 17.5 percent (Rs 229.30 billion ) as compared to a growth of 14.4 percent ( Rs 165.48 billion ) in the previous year. In the review period, loans and advances of commercial banks, development banks and finance companies increased by 18.8 percent, 13.5 percent and 0.3 percent respectively.
Likewise, credit to the private sector from BFIs increased by 19.8 percent (Rs. 221.61 billion) in the review year compared to an increase of 18.7 percent (Rs. 176.14 billion) in the previous year. In the review year, private sector credit from commercial banks, development banks and finance companies increased by 22.0 percent, 16.0 percent and 0.4 percent respectively.
Reserve increased by 14.3%
The annual report has also shown the increment of reserve money in the FY 2014/15. In the review year, reserve money of BFIs increased by 14.3 percent compared to an increase of 23.3 percent in the previous year. The idle growth in commercial banks’ deposit at the NRB owing to their investment in deposit auction is reflected in a slower growth of reserve money.
NPL drops to 3.33 % from 3.76%
The report also unveils about the Non Performing Loan (NPL) of the existing BFIs. As per NRB report, the ratio of non-performing loan (NPL) to total loans of BFIs has dropped to 3.33 percent in mid-July 2015 compared to 3.76 percent a year
