Saving Deposits Surge 38% and Fixed Deposits Dip Slightly – Nepal’s Banking Sector Liquidity Diversifies

According to the latest data from the Nepal Rastra Bank (NRB) mid-month survey, saving deposits in Nepal’s banking system surged by approximately 38 % year-on-year, reaching around Rs 2.77 trillion, while fixed deposits dipped slightly by about 5 %, signifying a shift in depositor behaviour and a diversification of liquidity within the banking sector.

The growth in saving deposits underscores improved household liquidity and stronger engagement with formal banking channels. It reflects factors such as rising remittance inflows, increased financial inclusion, and a preference for more accessible deposit products. At the same time, the slight contraction in fixed deposits suggests that depositors are either opting for shorter-term instruments or reallocating funds into savings accounts that offer greater flexibility or respond to changing interest-rate conditions.

From a banking sector perspective, this trend provides deeper structural resilience: as savings deposits rise, banks gain more stable funding sources, which can support their lending operations and liquidity management. The decline in fixed deposits might reduce interest-rate pressure on longer-tenure liabilities, while the increasing share of savings deposits may help banks maintain healthier asset-liability maturity profiles amidst a dynamic macro-monetary environment.