KATHMANDU: Even after the increase in the interest rate, the deposit collection of commercial banks has not increased, the CD ratio has started to reach above 90 percent again.

According to the data of Nepal Bankers Association, the CD ratio of three banks has reached over 90 percent in Shrawan (July 17- August 16) itself.

According to the data, Century Bank’s CD ratio has reached 91.63 percent, while Nabil Bank and Nepal Bank’s CD ratio is above 90 percent. Similarly, the CD ratio of other 8 banks is more than 89 percent. These banks cannot invest new loans now.

Nepal Rastra Bank (NRB) has instructed that the ratio of loans disbursed by banks to deposits collected should be maintained at 90 percent. According to this, some commercial banks have invested more than the specified limit. Currently, commercial banks are unable to provide loans.

In the absence of investable funds, the loan demand in the bank will also increase rapidly. NRB data shows that, until four days ago, bank deposits were 5.034 trillion rupees. Now it has reached 5.023 billion. Similarly, loan disbursement was seen at 4.7 trillion four days ago, but now it has reached 4.71 trillion.

If we look at the statistics of the last financial year, the credit disbursement of commercial banks has increased by 12.7 percent, the disbursement of development banks by 13.9 percent and the disbursement of finance companies by 29.8 percent.

According to the report published by the Central Bank, more than half of the investment is in the consumer sector.

867 billion loans have been invested in consumer loans such as gold, silver, fixed AC receipts, guarantee bonds, private vehicles, educational expenses, personal expenses, etc. and 947 billion rupees have been loaned to the wholesale and retail business, which is mostly connected to the consumer sector again.

Sector wise investment details:

Agriculture: 388 billion

Consumer sector: 867 billion

Finance and insurance: 375 billion

Service sector: 393 billion

Mining: 878 billion

Production area: 695 billion

Construction: 190 billion

Metal production, machinery and electrical equipment: 72 billion

Transportation Equipment: 55 billion

Transport, communication sector: 292 billion

Wholesale and retail: 947 billion

Local government: 150 million

Other areas: 727 billion