BFI Financial Health Status Published by NRB: Key Indicators Show a Broadly Stable Banking Sector

Nepal’s banking and financial sector continues to show a range of important financial indicators that investors can use to understand the health, liquidity, capital strength, credit exposure, and financial access of Banks and Financial Institutions (BFIs).

According to the Major Financial Indicators published by Nepal Rastra Bank (NRB), as of the end of Shrawan 2083 (mid-August 2026), Nepal’s Class “A”, Class “B” and Class “C” financial institutions recorded notable indicators across credit, deposits, liquidity, capital adequacy and financial access. NRB continues to publish BFI financial indicators and related banking-sector statistics through its official statistics and supervision functions.

For investors in the Nepal stock market and NEPSE, these indicators can provide useful background when analyzing listed commercial banks, development banks and finance companies.

Major BFI Financial Indicators at a Glance

The NRB data shown in the report provides the following overall figures:

1. Deposits Remain a Major Part of the Financial System

The reported total deposit-to-GDP ratio stands at 125.59%, while total credit-to-GDP is reported at 90.15%.

The overall credit-to-total-deposit ratio is 71.78%, with the reported CD ratio at 71.23%.

These figures help investors understand how deposits are being mobilized and how much credit is being extended relative to the deposit base.

2. Deposit Composition Shows a Large Savings and Fixed-Deposit Base

According to the NRB table, savings deposits represent 47.46% of total deposits, while fixed deposits account for 35.43%.

Current deposits account for 7.45%, and call deposits represent 8.96%.

Deposit composition is important for investors because the cost and stability of deposits can influence a bank's interest expenses, net interest margin and profitability.

3. NPL Remains an Important Area to Watch

The overall NPL-to-total-loan ratio is reported at 5.66%.

For investors, this is one of the most important indicators when evaluating banks because rising non-performing loans can increase provisioning requirements and potentially affect profitability and capital strength.

Therefore, investors should not look only at a bank's EPS or dividend history. Asset quality, NPL trends, loan-loss provisions, provisioning coverage and credit growth should also be considered.

The NRB table reports total LLP-to-total-loan at 5.83%, providing another indicator of the banking sector's provisioning position.

4. Liquidity Position Provides Another Important Signal

The report shows:

• Cash & Bank Balance / Total Deposit: 7.88%
• Investment in Government Securities / Total Deposit: 14.27%
• Total Liquid Assets / Total Deposit: 37.78%

Liquidity is particularly important for banks because financial institutions must maintain sufficient liquid resources to meet withdrawals and other obligations while continuing normal lending and investment activities.

5. Capital Adequacy Remains a Key Banking-Sector Indicator

The reported overall:

• Core Capital / RWA: 9.89%
• Total Capital / RWA: 12.68%

Capital adequacy is important because capital provides a buffer against unexpected losses.

For NEPSE investors analyzing banking stocks, capital adequacy should be studied together with NPL, loan growth, provisioning, ROE, EPS, cost of funds and dividend capacity rather than viewed in isolation.

Financial Access Continues to Expand

The NRB table also highlights the scale of Nepal's financial system.

The reported overall figures include:

• 53 financial institutions
• 6,343 branches
• 63.66 million deposit accounts
• 2.04 million loan accounts
• 636 branchless banking centers
• 258,784 branchless banking customers
• 30.32 million mobile banking customers
• 2.46 million internet banking customers
• 15.11 million debit cards
• 334,653 credit cards
• 281,741 prepaid cards

These numbers demonstrate the increasing reach of formal banking and digital financial services across Nepal.

What Does This Mean for NEPSE Investors?

The NRB indicators provide useful sector-level information, but investors should not interpret them as a direct buy or sell signal for individual banking stocks.

For stock-market analysis, investors can combine NRB banking indicators with individual company fundamentals such as:

• EPS and EPS growth
• Book value per share
• ROE
• NPL ratio
• Provisioning
• Cost of funds
• Base rate and lending rates
• Loan and deposit growth
• Net interest income
• Operating profit
• Dividend history
• Capital adequacy
• Management quality
• Valuation and P/E ratio
• Market price and technical structure

This combination of fundamental analysis + technical analysis + market data can provide a more complete framework for studying listed BFIs.

BFI Health Status: Why Investors Should Look Beyond One Indicator

The latest NRB figures contain both supportive and risk-monitoring indicators.

A relatively strong liquidity and capital position can provide resilience, while the reported NPL level highlights why asset quality remains an important issue to monitor.

Therefore, instead of judging the entire banking sector from a single ratio, investors can track the direction of these indicators over multiple reporting periods.

For example:

Deposit Growth → Credit Growth → NPL → Provisioning → Profitability → Capital Adequacy → Dividend Capacity

Studying this chain can help investors better understand how changes in the banking environment may eventually affect listed BFI companies.

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Final Takeaway

The NRB's Major Financial Indicators provide a useful snapshot of Nepal's BFI sector covering deposits, credit, asset quality, liquidity, capital adequacy and financial access.

The overall figures show 71.23% CD ratio, 5.66% NPL-to-total-loan, 37.78% total liquid assets-to-deposit, 9.89% core capital-to-RWA and 12.68% total capital-to-RWA.

For NEPSE investors, however, sector-level statistics are only one part of the analysis. Individual bank financial statements, quarterly results, valuation, asset quality, capital position and market trends should also be examined before making investment decisions.

Source: Nepal Rastra Bank, Major Financial Indicators, as shown in the supplied NRB table, as of end of Shrawan 2083 (mid-August 2026). NRB's official website also provides current banking-sector statistics and financial indicators.

Frequently Asked Questions (FAQ)

What is the overall CD ratio of BFIs according to the NRB data?

The reported overall CD ratio is 71.23%.

What is the overall NPL ratio?

The reported NPL-to-total-loan ratio is 5.66%.

What is the total liquid assets to total deposit ratio?

The reported overall ratio is 37.78%.

What is the core capital to risk-weighted assets ratio?

The overall Core Capital/RWA ratio is 9.89%.

What is the total capital adequacy ratio shown in the report?

The overall Total Capital/RWA ratio is 12.68%.

Why is NPL important for NEPSE bank investors?

NPL indicates the portion of loans that are classified as non-performing. Investors commonly monitor NPL together with provisioning, recovery, profitability and capital adequacy when analyzing banks.

Are NRB BFI indicators enough to select a banking stock?

No single indicator provides a complete investment analysis. Investors can consider financial statements, earnings, valuation, asset quality, capital adequacy, dividend history and technical-market conditions alongside NRB sector-level data.

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