Growth rate of banks deposits slows down
KATHMANDU, July 11:
Despite expansion of the banking branches, commercial banks do not seem to have achieved much growth in increasing their deposits.
In the first nine months of the current fiscal year, 248 branches of commercial banks were added in the banking system however during the same period the per capita deposits increased by a mere Rs 600.
In the beginning of the fiscal year, the per capita deposit stood at Rs 19,500 that stood at Rs 20,100 by the end of third quarter of the fiscal year. Likewise, there were 933 commercial bank branches in the beginning of fiscal year that rose to 1,215 by the mid-April, according to the Economic Survey.
“In the recent times, the branches are being opened at rural areas where deposit growth does not happen rapidly,” said spokesperson for Nepal Rastra Bank (NRB) Bhaskar Mani Gyanwali.
“The bank’s branches had been more urban centric while rural areas were still denied of basic services thus NRB is encouraging the financial institutions to open more branches in the rural areas,” he said, adding that the slack in deposit growth rate with commercial banks has reflected in slow paced increment in the growth of average volume of deposit held by a depositor.
However, the growing numbers of banks’ branches have increased the outreach of formal financial service to the general people.
According to the report, with the expansion of branches, a single branch of commercial bank serves 23,800 people as of mid-April 2011, though the deposit growth rate has not been substantial in the recent times.
In the last ten months, the deposits with the commercial banks grew by the average of 0.265 per cent which in the corresponding period in the previous year was 2.27 per cent, according to Nepal Rastra Bank (NRB)’s data.
However, a branch of a financial institution served 11,000 people on average, according to the central bank’s data, by mid-April 2011.
In the corresponding period last year -mid-April 2010, the average number of people that a branch could serve stood at 33,400. A year before that — in mid-April 2009 — the average number of people getting financial service were 45,000 per branch.
By the mid-April 2011, the numbers of licensed Banks and Financial Institutions operating in Nepal has reached 219 including 31 commercial banks, 87 development banks, 80 finance companies and 21 microfinance banks that are providing financial services to the public.
Source: THT
Despite expansion of the banking branches, commercial banks do not seem to have achieved much growth in increasing their deposits.
In the first nine months of the current fiscal year, 248 branches of commercial banks were added in the banking system however during the same period the per capita deposits increased by a mere Rs 600.
In the beginning of the fiscal year, the per capita deposit stood at Rs 19,500 that stood at Rs 20,100 by the end of third quarter of the fiscal year. Likewise, there were 933 commercial bank branches in the beginning of fiscal year that rose to 1,215 by the mid-April, according to the Economic Survey.
“In the recent times, the branches are being opened at rural areas where deposit growth does not happen rapidly,” said spokesperson for Nepal Rastra Bank (NRB) Bhaskar Mani Gyanwali.
“The bank’s branches had been more urban centric while rural areas were still denied of basic services thus NRB is encouraging the financial institutions to open more branches in the rural areas,” he said, adding that the slack in deposit growth rate with commercial banks has reflected in slow paced increment in the growth of average volume of deposit held by a depositor.
However, the growing numbers of banks’ branches have increased the outreach of formal financial service to the general people.
According to the report, with the expansion of branches, a single branch of commercial bank serves 23,800 people as of mid-April 2011, though the deposit growth rate has not been substantial in the recent times.
In the last ten months, the deposits with the commercial banks grew by the average of 0.265 per cent which in the corresponding period in the previous year was 2.27 per cent, according to Nepal Rastra Bank (NRB)’s data.
However, a branch of a financial institution served 11,000 people on average, according to the central bank’s data, by mid-April 2011.
In the corresponding period last year -mid-April 2010, the average number of people that a branch could serve stood at 33,400. A year before that — in mid-April 2009 — the average number of people getting financial service were 45,000 per branch.
By the mid-April 2011, the numbers of licensed Banks and Financial Institutions operating in Nepal has reached 219 including 31 commercial banks, 87 development banks, 80 finance companies and 21 microfinance banks that are providing financial services to the public.
Source: THT
