Kathmandu. The investment made by insurance companies in fixed deposits of banks and financial institutions has increased by more than 12.5 percent. Nepal Rastra Bank (NRB) has announced the fiscal year 2019/20. This has been seen from the data till April 82.
Insurance companies (life, non-life, reinsurance, micro-life and micro-life) have invested Rs 648.19 billion in fixed deposits of banks and financial institutions till April of the current fiscal year. The investment of insurance companies stood at Rs 575.55 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 12.62 percent.
Similarly, the investment of banks in term deposits of employees’ provident fund declined by 3.75 percent to Rs 175.11 billion during the review period. The total investment of employees’ provident fund in banks stood at Rs 181.93 billion as of April last year.
During the review period, the citizen’s investment in banks increased by 17.88 percent to Rs 113.35 billion. As of April last year, the citizen’s investment fund in banks stood at Rs 111.16 billion.
The size of personal deposits has also increased by 11.68 percent till mid-April of the current fiscal year. As of April last year, the number of individual deposits in banks increased from Rs 3,881.86 billion to Rs 4,335.19 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.
