Total Banking Sector Assets Increase by 1.9% to Rs 9.16 Trillion – Nepal’s Financial Stability Maintained

According to the Nepal Rastra Bank’s (NRB) Mid-September 2025 “Other Depository Corporation Survey”, the total assets of Nepal’s banking sector increased by 1.9%, reaching Rs 9.16 trillion, compared to Rs 8.99 trillion in mid-July 2025. This steady growth in the financial sector’s balance sheet underscores Nepal’s maintained financial stability and moderate economic recovery under NRB’s prudent monetary management policies.

The asset growth was primarily supported by an increase in loans and advances, which rose by 1% to Rs 7.14 trillion, reflecting consistent private sector borrowing despite subdued investment sentiment. Similarly, other assets grew by 10.7%, indicating a rise in banks’ diversified holdings and balance sheet optimization. On the liabilities side, total deposits expanded by 0.5% to Rs 7.29 trillion, suggesting that depositor confidence remains firm, bolstered by stable remittance inflows and improved liquidity in the system.

The rise in total assets also coincides with an 8.5% increase in other liabilities, driven by higher general reserves and debenture issuance, signaling that banks are strengthening their capital adequacy and long-term funding sources. NRB’s policy of maintaining adequate liquidity buffers while encouraging credit flow to productive sectors appears to have contributed to a balanced expansion of both assets and liabilities.