By A Staff Reporter

Kathmandu, Dec. 20

Growth of deposit collection at Banks and Financial Institutions (BFIs) has dropped during the first four months of the current fiscal year compared to same period a year ago.

Deposit collected by BFIs has increased only by 3.1 per cent in the first four months of the current fiscal year compared to an increase of 3.6 per cent in the corresponding period the previous year, according to a macroeconomic and financial report of Nepal Rastra Bank published Wednesday.

On y-o-y basis, deposits at BFIs expanded 17.4 per cent in mid-November 2019.

The share of demand, saving, and fixed deposits in total deposits stands at 7.7 per cent, 32.5 per cent and 48.7 per cent respectively in mid-November 2019. Such shares were 7.7 per cent, 34.7 per cent and 46.2 per cent respectively a year ago.

The share of institutional deposits in total deposits of BFIs stands at 44.7 per cent in mid-November 2019. Such share was 44.3 per cent in mid-November 2018.

Credit to the private sector from BFIs increased by 5 per cent in the review period compared to a growth of 8.5 per cent in the corresponding period the previous year, NRB said.

On y-o-y basis, credit to the private sector from BFIs increased by 15.6 per cent in mid-November 2019.

Of the total outstanding credit of the BFIs, 64.5 per cent is against the collateral of land and building and 13.6 per cent against the collateral of current assets (agricultural and non-agricultural products).

Loan of BFIs to agriculture sector increased by 2.9 per cent, industrial production sector increased by 6.4 per cent, construction sector increased by 5.4 per cent, transportation, communication and public sector increased by 5.9 per cent and service industry sector increased by 7.1 per cent in the review period.

In the review period, term loan extended by BFIs increased by 8.6 per cent, trust receipt (import) loan increased by 9 per cent, demand and working capital loan increased by 6.8 percent, real estate loan (including residential personal home loan) increased by 5.3 per cent, hire purchase loan increased by 1.1 per cent and overdraft increased by 0.9 per cent whereas margin nature loan decreased by 1.5 per cent.