Banking News – Nepal’s banking system recorded a sharp one-day decline of Rs. 11 billion in deposits, while lending activity continued to increase, according to the latest data released by Nepal Rastra Bank (NRB).

As of Asar 29, total deposits in the banking system stood at Rs. 8.280 trillion (Rs. 82.80 trillion), down from Rs. 8.291 trillion (Rs. 82.91 trillion) recorded the previous day.

Commercial banks also witnessed an identical Rs. 11 billion decline in deposits. Their total deposits fell from Rs. 7.489 trillion (Rs. 74.89 trillion) to Rs. 7.478 trillion (Rs. 74.78 trillion) over the same period.

Despite the decline in deposits, commercial banks increased their lending by Rs. 5 billion. Outstanding loans rose from Rs. 5.931 trillion (Rs. 59.31 trillion) on Asar 28 to Rs. 5.936 trillion (Rs. 59.36 trillion) on Asar 29.

Similarly, the overall banking and financial sector’s credit disbursement also increased by Rs. 5 billion, rising from Rs. 5.275 trillion (Rs. 52.75 trillion) to Rs. 5.280 trillion (Rs. 52.80 trillion) during the period.

According to Nepal Rastra Bank, the average Credit-to-Deposit (CD) ratio of banks stood at 70.91%, while the interbank interest rate remained at 2.75%, indicating that liquidity conditions in the banking sector continue to remain comfortable despite the temporary decline in deposits.