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By Sandeep Chaudhary

Nepal’s Commercial Banks Deposits Cross Rs. 65 Trillion What It Means

Nepal’s Commercial Banks Deposits Cross Rs. 65 Trillion What It Means

Based on Nepal Rastra Bank’s mid-July 2025 (Asadh 2082) supervisory data, the total deposits of commercial banks have crossed Rs. 65 trillion — a milestone that highlights both the depth of Nepal’s banking sector and the shifting dynamics of its economy. The figure stood at Rs. 65.41 trillion, with local currency (LCY) deposits contributing a dominant Rs. 63.80 trillion, while foreign currency deposits made up the rest. This sharp expansion in deposit volumes reflects rising public trust in the banking system, greater financial inclusion, and the strong remittance inflows that continue to underpin Nepal’s monetary stability.

Breaking it down, government-owned banks like Rastriya Banijya Bank (Rs. 5.02 trillion deposits) and Nepal Bank Limited (Rs. 3.36 trillion deposits) remain dominant deposit-holders due to their long-standing credibility among rural and urban populations. Similarly, Agriculture Development Bank (Rs. 2.93 trillion deposits) has also maintained a large share, especially from the agricultural and cooperative-linked sectors. Together, the three state banks account for over Rs. 11 trillion in deposits, around 17% of the total banking system’s deposit base.

On the private banking side, the competition is intense. Global IME Bank (Rs. 5.75 trillion) has emerged as the single largest private sector deposit-holder, followed closely by Nabil Bank (Rs. 5.32 trillion) and Nepal Investment Mega Bank (Rs. 4.76 trillion). Other major private banks such as NIC Asia (Rs. 3.23 trillion), Kumari Bank (Rs. 3.79 trillion), and Laxmi Sunrise Bank (Rs. 3.71 trillion) are also expanding their deposit base rapidly. This shows how private sector banks are increasingly competing with traditional state-owned players for the confidence of depositors.

The implications of crossing Rs. 65 trillion are significant. On one hand, it signals strong liquidity in the banking system, giving banks the capacity to finance credit growth, infrastructure projects, and private sector expansion. On the other hand, it raises questions about efficient deployment of deposits, since credit growth has been slower compared to the surge in deposits, resulting in a Credit-to-Deposit (CD) ratio of only 76.63%. This indicates that a large portion of deposits is sitting idle in safe assets like government securities or NRB balances, rather than being fully converted into loans for productive investment.

In summary, Nepal’s commercial banks crossing Rs. 65 trillion in deposits reflects a resilient financial system backed by remittances, financial deepening, and depositor trust. However, the challenge lies in transforming this liquidity into productive credit without compromising on risk management. For depositors, this milestone also reaffirms confidence in the system’s safety, as liquidity cushions remain strong and the sector is well-regulated by NRB.

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