Protected deposits and credit increases by 44% and 41% respectively; Number of BFIs fallen to 85 from 115 in Ashad 2074
The deposit and credit protection fund provides protection to deposit accounts, both saving and fixed, held by natural person in any Banks and financial institution (BFIs) for upto Rs 3 lakh. Similalry, it also provides protection for funds lent to priority sectors such as deprived sector loan, SME loan, agricultural loan and so on.
As of Poush end 2075, credit worth Rs 13.37 arba and deposits worth Rs 5.79 kharba has been protected by the fund.The details are mentioned in the table below:
| Particulars | 2074 Poush | 2075 Poush | Growth |
|---|---|---|---|
| Protected credit (Rs in crore) | 925.6 | 1,337.12 | 44.5% |
| Protected deposits (Rs in crore) | 41,096 | 57,997.49 | 41.1% |
| # of BFIs | 89 | 85 | -4.5% |
| # of deposit accounts | 17,982,381 | 2,290,606 | -87.3% |
As we can see the amount of deposits and credits protected has increased, while the number of BFIs and the number of deposit accounts has fallen. After the increment in minimum paid-up capital of all BFIs by Nepal Rastra Bank, considerable number of BFIs have opted for merger and acquisition. The number of BFIs was 115 on Ashad 2074, while fell to 89 in Poush 2074 and then to 85 on Poush 2075.
These 85 include 28 commercial banks, 32 development banks, 24 finance companies and 1 infrastructure development bank.
