Image for Representation.
KATHMANDU: A deposit of Rs 100 billion has been added to commercial banks in the first three weeks of Ashad.
The increase in capital expenditure of the government in Ashadh had a positive impact on bank deposits.
According to the data made public by the Nepal Bankers’ Association, a total of Rs 4.394 trillion was deposited until June 17. As of July 8, it has reached Rs 4.494 trillion.
Similarly, the credit flow declined by Rs 14 billion in the same period. Of the total loan disbursement of Rs 4.18 trillion till June 17, the disbursement has come down to 4.17 trillion by July 8.
The banks have also shown restraint in the flow of credit due to the mandatory provision that all banks should reduce the CD ratio to 90 percent by mid-July.
According to the Nepal Rastra Bank, the average CD ratio of commercial banks is currently 87.14 percent. The credit flow has also declined as banks restrained to issue new loans of late.