Every month Nepal Rastra Bank (NRB) publishes the latest data of the major macroeconomic indicators to provide a short term review of how things are going. Below is a brief analysis of the total Deposits details of Banks and Financial Institutions of Nepal.
The below table shows the total figures of deposits from each sector:
| Deposit Details of Banks and Financial Institutions (Rs. In million) |
| Headings |
2017 Feb |
2018 Feb (P) |
| 1. Foreign Deposits |
107204.1 |
73176.9 |
| 2. Local Government/VDC |
1529.4 |
12038.7 |
| 3. Non-banks Financial Institutions |
348649.6 |
383671.4 |
| 3.1 Insurance Companies |
126003.2 |
165200.0 |
| 3.2 Employees Provident Fund |
49998.5 |
50567.0 |
| 3.3 Citizen Investment Trust |
52182.2 |
60105.1 |
| 3.4 Others |
120465.7 |
107799.3 |
| 4. Government Corporations |
211421.9 |
243046.0 |
| 5. Non-government Corporations |
199866.1 |
196327.0 |
| 6. Inter-bank Deposits* |
78806.3 |
67500.8 |
| 7. Non-profit Organizations |
80201.3 |
98728.9 |
| 8. Individuals |
1184662.8 |
1371684.3 |
| 9. Miscellaneous |
62945.5 |
77086.0 |
| Total |
2275286.9 |
2523260.0 |
| P = Provisional |
| *Deposits among "A", "B" and "C" class financial institutions |
From the above table we can see that the total deposits held at Banks and Financial Institutions (BFIs) of Nepal stand at Rs. 25.23 Kharba as opposed to Rs 22.75 Kharba in the previous year. The total figures depict an increase of 10.90% in the deposits. However, the market still faces liquidity shortage which can be explained by an even higher increase in loans and credits. According to the data published by NRB, on the same period the private loans have increased by 13.5%, hire purchase loan by 8.4%, Overdraft by 10.9% and real estate loan by 10.7%.
In a more alarming scenario, the foreign deposits have decreased by the highest percentage of 31.74%. There might be various factors in role for this but the major reason can be attributed to the rise in imports and no similar change in exports. As per the NRB report, within the 7 months of this fiscal year Nepal has a total import of Rs. 6 kharba 58 arba, while the export stood at Rs. 48 arba only leaving the net exports figure in deficit by Rs. 6 kharba 10 arba.
On the brighter side, there has been a significant increment in the amount of deposits from local bodies amounting to 687.16% higher than last year’s. With the federalism crawling in, and official establishment of local bodies the government budget has been finally mobilized increasing the flow of money in market.
Post the devastating earthquake, the awareness regarding the need and importance of insurance has increased among the Nepali community. This has contributed to gradual development in the Insurance sector. Keeping up that spirit, Insurance sector has been able to collect more premium amounts from the market which has increased the deposits from this sector by 31.11%.
To have to wider view of other macroeconomic statistics published on Feb 2018, you can click
here.
