NRB Capital and Reserves Jump 14.7% to Rs 681.3 Billion, Reflecting Strong Balance Sheet Expansion

According to the Nepal Rastra Bank (NRB) Central Bank Survey for Mid-September 2025, the capital and reserves of the central bank increased by 14.7%, reaching Rs 681.28 billion, up from Rs 593.9 billion in mid-July 2025. This surge in reserves highlights a significant strengthening of NRB’s balance sheet, supported by growing foreign exchange assets, valuation gains, and prudent monetary management.

The rise in capital and reserves reflects NRB’s improved net worth position, benefiting from higher foreign currency reserves, which grew by Rs 182 billion (7.1%) over the same period. The valuation gain on foreign exchange and gold holdings contributed to the increase in the central bank’s capital buffer. This expansion also underlines Nepal’s improved external sector resilience, as the strong buildup in reserves enhanced the NRB’s ability to manage currency volatility, external payments, and liquidity operations.

Additionally, the NRB’s total assets and liabilities climbed to Rs 2.85 trillion, marking a 7% increase over two months. While reserve money declined by 5%, the rise in capital and reserves indicates a strategic effort to maintain financial soundness and institutional stability. The growth of reserves also strengthens NRB’s capacity for future monetary interventions and enhances its credibility in managing Nepal’s monetary and financial systems.