Commercial bank lending rises by Rs 63 billion in Bhadau

Credit flow from Nepal's commercial banks has shown signs of recovery, with Nepal Rastra Bank figures indicating an increase of close to Rs 63 billion in Bhadau of the current fiscal year 2083/84, Ratopati reported on 26 September 2026. Outstanding lending by the 20 commercial banks reached Rs 53 kharba 50 arba 65 crore at the end of Bhadau (one kharba is Rs 100 billion), compared with Rs 52 kharba 87 arba at the end of Saun. Fifteen of the 20 banks expanded their loan books during the month, while five recorded a decline. Global IME Bank led the way with an additional Rs 16.19 billion, which the report said took it to the top of the overall lending table. Laxmi Sunrise Bank added Rs 10.31 billion, Kumari Bank Rs 7.65 billion and Everest Bank Rs 7.64 billion. NIC Asia, Sanima, Rastriya Banijya Bank, Prabhu Bank and Nepal Investment Mega Bank saw their lending shrink. Santosh Koirala, president of the Nepal Bankers' Association, said credit growth over the first two months of the fiscal year signals that today's excess liquidity can be brought under control. He said private-sector demand for loans had begun to rise in the past month, helped by a stable government, reform-oriented economic policy and low interest rates, and that liquidity could be absorbed within a few years if the trend continued. The report cautioned that the rise is not unusually strong. Nepal Rastra Bank had targeted 12 percent credit growth in fiscal year 2082/83, but growth stayed around 6.5 percent. Lending rose by Rs 51 billion in Bhadau last year and by more than Rs 1 kharba in a single month last Poush. Banking experts told Ratopati that loan demand normally rises as the festival season begins. Deposits grew faster than loans, so liquidity has not tightened. Commercial bank deposits stand at Rs 75 kharba 76 arba, up from Rs 75 kharba 1 arba at the end of Asar, a rise of Rs 75 billion. The credit-to-deposit ratio of commercial banks is 71.19 percent, against 69.90 percent at the end of Asar. Across all banks and financial institutions, deposits were Rs 83 kharba 11 arba and credit Rs 59 kharba 58 arba at the end of Asar, a ratio of 71.69 percent.