Kathmandu. The investment made by insurance companies in fixed deposits of banks and financial institutions has increased by 13 percent. Nepal Rastra Bank (NRB) has announced the fiscal year 2019/20. This has been seen from the data till May 8.
Insurance companies (life, non-life, reinsurance, micro-life and micro-life) have invested Rs 655.61 billion in fixed deposits of banks and financial institutions till May of the current fiscal year. The investment of insurance companies stood at Rs 581.49 billion in the last fiscal year. In the last one year, the investment made by insurance companies in fixed deposits of banks has increased by 12.75 percent.
Similarly, the investment of banks in term deposits of employees’ provident fund declined by 2.41 percent to Rs 172.68 billion during the review period. The total investment of employees’ provident fund in banks stood at Rs 176.95 billion till May last year.
During the review period, citizen investment fund’s investment in banks increased by 14.97 percent to Rs 131.41 billion. As of May last year, the citizen’s investment fund in banks stood at Rs 114.30 billion.
The size of personal deposits has also increased by 12.36 percent till mid-June of the current fiscal year. As of May last year, the number of individual deposits in banks increased from Rs 3,914.18 billion to Rs 4,397.79 billion at the end of the review period.
It has been made mandatory to fix the interest rate on institutional fixed deposits by reducing the interest rate on individual fixed deposits by only 1 percent.
