Major Banking Indicators: Deposits In BFIs Over 104 Percent Of GDP

August 28, 2020 | Investopaper

At the end of Ashad 2077, the banking sector has accumulated a total deposit of Rs 39.34 Kharba. This is almost 104.43 percent of the GDP of Nepal. Commercial Banks account for the 92.65 percent in 104.43 percent og GDP.

Similarly, the total credit by the BFIs stood at Rs 32.83 Kharba, which is 86.89 percent of the GDP. The total credit to total deposit ratio is 83.21 percent at the Ashad end, 2077. Likewise, the CCD ratio stands at 69.58 percent.

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Current Status of Banking in Nepal

Financial Analysis of Commercial Banks of Nepal [With Ranking]

This is also presented in the table below:

Headings	Commercial Banks	Development Banks	Finance	Total

Total Deposit/GDP	92.65	9.42	2.36	104.43
Total Credit/GDP	77.26	7.63	2	86.89
Total Credit/ Total Deposit	83.39	81.06	84.72	83.21
CCD Ratio	69.93	71.84	68.46	69.58

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Deposit Structure

Fixed Deposit accounts for almost 47.9 percent of the total deposit in BFIs (A, B &C) of Nepal. Likewise, Savings Deposit is 31.12 percent of the total deposits. Similarly, Current Deposit and Call Deposit account for 10.2 percent and 9.85 percent respectively.

S.N.	Deposit Structure	Commercial Banks	Development Banks	Finance	Total
1	Fixed Deposit/Total Deposit	47.18	52.99	56.01	47.9
2	Saving Deposit/Total Deposit	31.16	31.8	26.85	31.12
3	Current Deposit/Total Deposit	11.17	2.61	2.44	10.2
4	Call Deposit/Total Deposit	9.53	12.42	12.03	9.85

Also Read: Deposits And Loans Of Commercial Banks In Nepal

NPL & Deprived Sector Lending

The Non-Performing Loans (NPL) of A,B & C class banks stood at 1.89 percent at the end of Ashad, 2077. Likewise, the these banking institutions have floated 6.61 percent of the total loans in the deprived sector.

Headings	Commercial Banks	Development Banks	Finance	Total
NPL/ Total Loan	1.81	1.52	6.18	1.89
Total LLP /Total Loan	2.44	13.71	9	3.58
Deprived Sector Loan/Total Loan	6.25	9.95	7.86	6.61

Also Read: Non Performing Loans (NPL) Of Commercial Banks In Nepal

Liquidity Ratio (%)

The various liquidity ratios of the banking sector is presented in the table below:

Headings	Commercial Banks	Development Banks	Finance	Total
Cash & Bank Balance/Total Deposit	12.29	10.4	16.46	12.21
Investment in Gov. Securities/Total Deposit	14.26	7.92	9.08	13.57
Total Liquid Assets/Total Deposit	27.52	29.49	36.4	27.9

Capital Adequacy Ratios (%)

The average Core Capital to RWA (Risk Weighted Assets) ratio of the A,B & C class financial institutions stood at 12.01 percent at the end of Ashad, 2077. Likewise, the total capital to RWA was at 14.16 percent.