KATHMANDU: Deposits in banks and financial institutions fell by Rs 55.79 billion, or 0.8 percent, to Rs 7.20 trillion in the first month of fiscal year 2025/26, according to Nepal Rastra Bank.

Last year, deposits had decreased by Rs 43.45 billion, or 0.7 percent. On an annual basis, total deposits grew 12.5 percent by the end of first month of current fiscal year.

Current, savings, and fixed deposits accounted for 5.6 percent, 37.5 percent, and 48.4 percent of total deposits, while institutional deposits made up 35.1 percent, slightly down from 35.9 percent last year.

Loans to the private sector decreased by Rs 2.93 billion, or 0.1 percent, reaching Rs 5.495 trillion.

On an annual basis, private sector loans grew 8.0 percent, with 62.7 percent going to non-financial institutions and 37.3 percent to individuals and households.

Collateral-wise, 14.8 percent of loans were backed by current assets and 64.4 percent by land and property.

Sector-wise, loans increased in industrial (+0.8%), construction (+0.6%), and transport/communication/public service (+0.5%) sectors, while decreasing in wholesale/retail (-0.5%), services (-1.5%), and consumer (-0.04%) sectors.