Kathmandu- The total number of deposit accounts in banks and financial institutions across the country has crossed 68 million, while the number of loan accounts remains below two million, according to the latest data released by Nepal Rastra Bank (NRB).
As of mid-November of the current fiscal year, deposit accounts in 54 banks and financial institutions, including commercial banks, development banks and finance companies, reached 68 million. During the same period last fiscal year, the number stood at 57.26 million, indicating a significant year-on-year increase.
Commercial banks account for the largest share, with deposit accounts rising to 52.21 million, up from 49.43 million a year ago. Deposit accounts in development banks increased to Seven million six hundred fifteen thousand one hundred seven from Seven million two hundred fifty-nine thousand six hundred forty-two, while finance companies recorded 1.04 million deposit accounts, compared to 923,270 during the same period last year.
Despite the growth in deposits, the expansion of credit remains limited. NRB data shows that as of mid-Kartik, the total number of loan accounts in operation in the banking sector stood at 1,994,912, compared to 1,918,926 in the same period of the previous fiscal year.
Commercial banks alone accounted for 1,655,280 loan accounts, up slightly from 1,595,645 last year. Development banks recorded 266,546 loan accounts, while finance companies had 73,086 loan accounts, showing a gradual increase compared to the previous fiscal year.
The data reflects a continued gap between rising savings and sluggish loan growth, raising concerns among policymakers about credit flow to productive sectors of the economy.
