Kathmandu, December 20
The credit-to-deposit ratio (CD ratio) has improved as deposits in banks and financial
institutions have started increasing. According to Nepal Rastra Bank, the total deposits of banks and financial institutions have increased by Rs 14 billion and reached Rs 486 billion as of last Friday. Of this, banks have Rs 42.34 trillion, and other banks and financial institutions have Rs 571 billion in deposits.
The CD ratio of banks has also improved due to increase in deposits. As of Friday, the average CD ratio of banks has dropped to 91.14 percent. Along with the increase in deposits, the interbank interest rate has also come down. The interbank interest rate fell to 4.86 percent on Friday.
Along with the increase in deposits in banks, credit investment has also increased. Credit
investment increased by Rs 11 billion to Rs 462 billion, according to Rastriya Bank. Due to lack of liquidity in the market, banks have stopped investing in non-essential loans.
By Karuna Thapa
