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 companies, 14 non-life insurance companies, 4 micro life insurance, 3 micro life insurance and 2 reinsurance companies. As per the provision, insurers can invest 30 percent of the total investable amount in commercial banks and infrastructure banks, 10 percent in development banks and 5 percent in finance companies.
Nepal Rastra Bank (NRB) has released the current fiscal year 2082. According to data up to 8 months of February, 2018, insurance companies’ investment in fixed deposits of banks has increased by more than 3 percent in the last one year.
Insurance companies have invested Rs 666.23 billion in fixed deposits of banks till mid-March. Previous fiscal year 2081. Insurance companies had invested Rs 644.41 billion in fixed deposits of banks till March 1980. The investment of the insurer increased by 3.37 percent in the review period compared to the previous year.
Similarly, the Employees Provident Fund (EPF) has invested Rs 181.36 billion in fixed deposits of banks till mid-March of the current fiscal year. The fund had invested Rs 177.03 billion in the same period of the previous year. The investment of the fund increased by 2.45 percent in the review period compared to the previous year.
Meanwhile, Citizen Investment Trust (CIT) has invested Rs 132.35 billion in fixed deposits of banks in the review period. The Fund had invested Rs 140 billion in the same period last year. The fund’s investment decreased by 5.46 percent.
As of the review period, the deposits of the general public stood at Rs 4.970 trillion. In the same period of the previous year, the deposits of the general public were Rs 4.262 billion. The deposits of the general public have increased by 16.61 percent.
