KATHMANDU: Commercial banks in Nepal are struggling to increase their credit flow, according to the latest data from the Nepal Bankers Association (NBA).
Despite the Nepal Rastra Bank setting the deposit-to-credit (CD) ratio limit at 90%, no commercial bank has been able to reach that mark.
Data from the month of Falgun shows that the average CD ratio of commercial banks stood at just 79.29%, significantly lower than the regulatory limit. Notably, the CD ratios of eight commercial banks fell below 80%, with no bank exceeding 86%.
Rastriya Banijya Bank recorded the lowest credit flow, with a CD ratio of 63.86%, making it the weakest performer among the commercial banks. Other banks with CD ratios below 80% include Agricultural Development Bank, Global IME Bank, Nepal Bank, Nepal Investment Mega Bank, Nepal SBI Bank, Prabhu Bank, and Standard Chartered Bank.
During the month of Falgun, commercial banks managed to collect deposits worth Rs 6.630 trillion, while loan disbursement during the same period amounted to Rs 4.850 trillion.
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