The financial sector in Madhesh province is undergoing a notable expansion, as evidenced by the annual report on regional economic activity presented by the Nepal Rastra Bank for the fiscal year 2079/80. The report discloses a substantial 13.25% surge in total deposits and a 4.68% increase in loans, reflecting a positive trend in the banking landscape.
According to the report, banks and financial institutions in Madhesh province have witnessed a significant rise in total deposits, reaching Rs. 2 kharba 96 arba 50 crore. This marks a noteworthy increase of 13.25% compared to the previous fiscal year. In contrast, the corresponding period in the preceding year saw a 5.35% growth, amounting to Rs. 2 kharba 61 arba 81 crore.
The fiscal year’s review also indicates a 4.68% growth in loans extended by banks and financial institutions in Madhesh province, totaling Rs. 4 kharba 50 arba 21 crores. Although this represents a positive trajectory, the growth in loans during the same period of the previous year was more substantial at 16.70%, totaling Rs. 4 kharba, 30 arba, and 9 crore.
Furthermore, the report highlights an increase in the total number of branches of banks and financial institutions, including microfinance entities, licensed by Nepal Rastra Bank in Madhesh Province. The current count stands at 1,745 branches during the year under review, reflecting growth from the 1,607 branches that were operational in the province during the corresponding period in the previous year.