Kathmandu. Insurance companies have to invest in various sectors. However, a large part of the investment of insurance companies is seen in the fixed deposits of banks.
Currently, there are 14 life insurance, 14 non-life insurance, 4 micro non-life insurance, 3 micro life insurance and 2 reinsurance companies. Insurers can invest 30 percent of the total investable amount in commercial banks and infrastructure banks as fixed deposits, 10 percent in development banks and 5 percent in finance companies.
The current fiscal year 2083 released by Nepal Rastra Bank. The data till the first month of July 84 shows that the investment of insurance companies in fixed deposits of banks has increased in the last one year.
Insurance companies have invested Rs 673.53 billion in fixed deposits of banks till the review period. Previous fiscal year 2082. Insurance companies had invested Rs 671.54 billion in fixed deposits of banks as of July 2018. Insurers’ investment increased by 0.29 percent in the review year compared to the previous year.
As of mid-July of the current fiscal year, the Employees Provident Fund (EPF) has invested Rs 195.51 billion in fixed deposits of banks. The fund had invested Rs 177.50 billion in the previous year. The fund’s investment has increased by 10.15 percent in the review year compared to the previous year.
On the other hand, Citizen Investment Trust has invested Rs 150.79 billion in fixed deposits of banks till the review period. In the same period last year, the fund had invested Rs 129.88 billion. The fund’s investment decreased by 16.10 percent.
In the review year, the deposits of the general public in the banks stood at Rs 5,384.67 billion. In the previous year, the deposits of the general public in the banks were Rs 4,580.57 billion. The deposits of the general public have increased by 17.55 percent.
