Total lending by commercial banks during the first eight months of the fiscal year 2024/25 has increased by 6.12 percent, reaching Rs 4,851bn, according to the Nepal Bankers’ Association (NBA).
This growth reflects a gradual recovery in economic activities and an uptick in demand for credit from businesses and individuals. The 20 commercial banks operating in the country collectively disbursed an additional Rs 280bn in loans between mid-July 2024 and mid-March 2025.
The NBA’s data reveals that the highest credit disbursement occurred in the month of Poush (mid-December to mid-January), with banks lending Rs 94bn. This was followed by Rs 56bn in Ashwin (mid-September to mid-October), Rs 53bn in Bhadra (mid-August to mid-September), and Rs 42bn in Mangsir (mid-November to mid-December).
However, not all banks experienced growth in loan disbursement. Global IME Bank, Kumari Bank, NIC Asia Bank, Siddhartha Bank, and Standard Chartered Bank reported a decline in their loan portfolios compared to the previous month. For instance, Global IME Bank’s total credit disbursement dropped by Rs 1.51bn, bringing its total loan investment to Rs 429bn. Similarly, Kumari Bank’s loan investment decreased by Rs 480 million to Rs 301.09bn, while NIC Asia Bank saw a reduction from Rs 252.45bn to Rs 242.9bn over the same period.
The government has set an ambitious target of increasing credit disbursement by 12.5 percent in the current fiscal year. However, the data from the first eight months suggests that achieving this target may be difficult. The slow growth in credit disbursement, coupled with economic uncertainties, has raised concerns among stakeholders about the banking sector’s ability to meet the government's expectations.
On the other hand, total deposits in commercial banks grew by 4.9 percent to Rs 6,037bn during the eight-month period, up from Rs 5,755bn in mid-July 2024. Over this period, commercial banks added Rs 282bn in deposits, with the highest increase of Rs 133bn recorded in Ashwin (mid-September to mid-October). Other notable increases included Rs 73bn in Bhadra (mid-August to mid-September), Rs 51bn in Poush (mid-December to mid-January), Rs 40bn in Falgun (mid-February to mid-March), and Rs 33bn in Mangsir (mid-November to mid-December).
