KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Nepali commercial banks have seen a notable growth in assets, reaching over Rs 7.468 trillion, an 11.28% increase over the past year.
Among 20 commercial banks, Global IME Bank had the largest growth, with assets rising by 14.84%, while NIC Asia Bank saw a decline.
In tourism, Nepal has recovered 96.3% of pre-COVID visitor levels, with a significant drop during the pandemic, particularly in 2020.
The 15th South Asia Economic Summit focused on green transformation in the region, highlighting climate change and green finance.
Additionally, Nepal saw an increase in remittances, totaling Rs 521.63 billion, and a strong Balance of Payments surplus of Rs 258.3 billion in the first four months of the fiscal year.
Commercial banks’ assets reach Rs 7.47 trillion
The total assets of Nepali commercial banks have exceeded Rs 7.468 trillion, reflecting an 11.28 percent increase over the past year.
According to Nepal Rastra Bank (NRB), the combined asset value of 20 commercial banks stood at Rs 6.711 trillion as of mid-November for the 2023/24 fiscal year.
Over the past year, the total assets of these banks grew by Rs 757.44 billion. All but NIC Asia Bank saw an increase in asset values during the review period, with NIC Asia Bank experiencing a 12.27 percent decline, reducing its assets to Rs 392.86 billion.
Among the banks, Global IME Bank recorded the largest increase, with a 14.84 percent rise (Rs 84 billion), bringing its total assets to Rs 649.97 billion.
Nabil Bank also experienced notable growth, adding Rs 74.64 billion to reach Rs 606.60 billion in assets.
NRB data also reveals that the non-banking assets of commercial banks grew by Rs 1.20 billion between mid-July and mid-November of the current fiscal year. As of this period, these non-banking assets totaled Rs 31.38 billion, up from Rs 30.17 billion.
Nepal achieves 96.3 percent recovery
Nepal recorded its highest-ever number of tourist arrivals in 2019, with 1.197 million international visitors. However, the outbreak of the coronavirus pandemic caused a dramatic decline in tourism, pushing the sector into a crisis.
The pandemic’s effects on tourism were felt early in 2020 as concerns about infection grew.
Both globally and within Nepal, travel restrictions and lockdowns severely disrupted the movement of tourists, causing a sharp drop in foreign arrivals to just 230,085 in 2020.
While arrivals remained steady in the first two months of that year, the numbers sharply declined from March onwards.
In April 2020, during the peak of the lockdown, foreign arrivals plummeted to just 14, the lowest recorded in Nepal’s tourism history.
The sector was nearly halted due to ongoing concerns about infection. By 2021, foreign visitor numbers had slightly improved, with 150,962 visitors arriving, particularly after October.
South Asia Economic Summit focuses on green transformation
Experts emphasized the need for an inclusive green transformation across South Asia during the 15th South Asia Economic Summit (SAES XV), which concluded in Kathmandu.
The summit, held from December 11 to 13, brought together economists, policymakers, and civil society leaders from across South Asia and beyond to address challenges related to sustainable and inclusive development, under the theme “Unleashing an Equitable Green Transformation in South Asia.”
The discussions centered on climate change, green finance, and the importance of regional cooperation.
Remittances worth Rs 521.63 billion flow into Nepal
Nepal received a total of Rs 521.63 billion in remittances during the first four months of the current Fiscal Year (FY).
Data from Nepal Rastra Bank released on Thursday shows that remittance inflows grew by 9.1 percent during this period.
This is lower than the 22.5 percent increase recorded during the same period last fiscal year. In US dollar terms, remittance inflows totaled USD 3.87 billion, up from USD 3.60 billion in the previous year.
Nepal’s BoP surplus reaches Rs 258.3 billion
Nepal has seen a significant increase in the net inflow of money, compared to outflows.
According to Nepal Rastra Bank (NRB) data, the Balance of Payments (BoP) recorded a surplus of Rs 258.3 billion during the first four months of the current fiscal year, up from a surplus of Rs 150.24 billion in the same period last fiscal year.
In US dollar terms, the BoP surplus grew from USD 1.13 billion to USD 1.53 billion in the review period.
Similarly, the current account showed a surplus of Rs 143.42 billion, compared to Rs 97.10 billion in the same period last year.
In USD, the current account surplus increased from USD 736 million to USD 1.6 billion.
During this period, net capital transfers amounted to Rs 2.47 billion, up from Rs 1.59 billion last year.
Additionally, direct foreign investment inflows reached Rs 5.76 billion, up from Rs 3.65 billion in the corresponding period of the previous year.
(Prepared by Srija Khanal)
Comment