Kathmandu. Insurance companies’ investment in fixed deposits of banks and financial institutions has increased by more than 15 percent. Nepal Rastra Bank (NRB) has announced the fiscal year 2019/20. This has been seen from the data of the current fiscal year 2018/19.
Insurance companies (life, non-life, reinsurance, micro-life and micro-life) have invested Rs 651.94 billion in fixed deposits of banks and financial institutions as of March 2018. As of March 2018, the investment of insurance companies was Rs 565.86 billion. In the last one year, the investment made by insurance companies in fixed deposits of banks has increased by 15.06 percent.
Similarly, the investment of banks in term deposits of employees’ provident fund increased by 5.54 percent to Rs 184.13 billion during the review period. The total investment of employees provident fund in banks stood at Rs 174.47 billion as of March last year.
As of March 2018, the citizen’s investment in banks has increased by 30.45 percent to Rs 139.98 billion. As of March last year, the citizen’s investment fund in banks stood at Rs 107.16 billion.
The size of individual deposits has also increased by 11.58 percent till Mid-March 2018. As of Mid-April last year, the number of individual deposits in the banks increased from Rs 3,869.44 billion to Rs 4,317.52 billion at the end of the review period.
Nepal Rastra Bank (NRB) has made a provision to fix the interest rate on institutional fixed deposits by reducing the interest rate on individual fixed deposits by only 1 percent. Earlier, there was a provision to reduce the interest rate on institutional fixed deposits by 2 percent compared to individuals.
