Nepal is making strong progress in expanding access to financial services, according to the latest Economic Survey released by the government. As of mid-March 2025, there has been a clear rise in the number of deposit and loan accounts, digital banking users, and the reach of financial institutions across the country.
The report shows that the number of deposit accounts in banks and financial institutions hit 58.399 million. Loan accounts climbed to 1.937 million. In the first eight months of this fiscal year alone, banks added 2.54 million deposit accounts and 44,000 new loan accounts. By comparison, the same period last fiscal year saw 3.223 million deposit accounts and 31,000 loan accounts added.
Digital banking also experienced fast growth. Mobile banking users now total 26.757 million, while internet banking users reached 2.141 million. This growth points to more people turning to electronic services for daily financial needs.
This shift is supported by better payment systems and improved digital infrastructure. The government has introduced policies, legal frameworks, and promoted digital access, which helped more users adopt online transactions. As of mid-March 2025, there are nine payment system operators and 25 payment service providers active in the market, including banks and financial firms.
Branch expansion is also progressing steadily. The average population per branch of banks and financial institutions, including microfinance, now stands at 2,527. This figure was slightly lower at 2,524 in mid-July 2024 and 2,517 in mid-July 2023. This trend suggests ongoing efforts to ensure banking services are accessible in all areas, especially rural ones.
Currently, there are 107 banks and financial institutions operating in the country. These include 20 commercial banks, 17 development banks, 17 finance companies, 52 microfinance institutions, and one infrastructure development bank. A key government goal—to set up commercial bank branches in all 753 local levels—has now been achieved.
In terms of performance, the banking sector has shown steady growth. Total deposits rose by 9.5% to Rs. 6,729.62 billion by mid-March 2025, up from Rs. 6,145.88 billion the year before. Similarly, loan disbursements to the private sector increased by 7.7%, reaching Rs. 5,378.78 billion compared to Rs. 4,996.53 billion a year earlier.
Despite the growth, interest rates have declined. The average deposit rate fell to 4.54%, down from 6.74% the previous year. Loan interest rates also dropped to 8.40%, compared to 10.78% in the same period last year.
However, the report also notes a rise in risk. Non-performing loans (NPLs) increased to 4.92% by mid-January 2025. This is a sharp rise from 3.73% in mid-January 2024, raising concerns about credit quality and asset risks in the banking sector.
Still, the survey highlights positive changes in the overall financial environment. More people now have access to bank accounts, digital tools, and nearby branches. With strong digital infrastructure and focused policies, Nepal is moving toward a more inclusive and modern financial system.
