Bagmati Province Dominates Bank Deposits and Lending, NRB Report Shows

Bagmati Province continues to command the largest share of banking activities in the country, accounting for the majority of deposits and loans mobilised by banks and financial institutions (BFIs). According to the Economic Activities Study Annual Report for FY 2024/25 released by Nepal Rastra Bank (NRB), the province held 65.8 per cent of total deposits and 59.5 per cent of total loans as of mid-July 2025.

The report shows that BFIs collected deposits worth Rs. 7,295 billion nationwide during the fiscal year, of which Bagmati alone contributed Rs. 4,797 billion. Other provinces lagged far behind, with Gandaki collecting Rs. 612 billion, Koshi Rs. 553 billion, Madhes Rs. 407 billion, Sudurpaschim Rs. 173 billion, and Karnali just Rs. 91.9 billion. On the lending side, out of total credit of Rs. 5,586 billion, Bagmati received Rs. 3,323 billion, reaffirming its central role in financial intermediation.

Sector-wise, industrial loans stood at Rs. 1,699.49 billion, making up over 30 per cent of total credit, with Bagmati capturing more than 71 per cent of this amount. Service sector lending reached Rs. 2,184.04 billion, led by wholesale and retail trade, real estate, and tourism, while Bagmati again accounted for nearly 60 per cent of such loans. Agricultural lending, meanwhile, remained relatively modest at Rs. 336 billion and recorded a marginal decline, with Bagmati holding the largest provincial share at 36.2 per cent.