Kathmandu, June 8
The government’s budget expenditures began to rise at the conclusion of the current fiscal year. The impact on bank deposits grows as current and capital expenses increase.
As a result, deposits in 27 commercial banks have risen by Rs 7 billion in only the last week.
Credit investment, on the other hand, has decreased by Rs 2 billion over the same time,
according to the Bankers’ Association.
Between May 27 and June 3, 27 commercial banks raised their deposits by Rs 7 billion to Rs 4.39 trillion, according to the association’s latest financial report. In comparison to the previous week, banks have invested Rs 41.96 trillion by reducing loans by Rs 2 billion.
Similarly, following the local elections on May 13, bank deposits climbed by Rs 20 billion in June alone.
At the same time, since bank deposits have increased while credit has decreased, the credit
deposit ratio (CD ratio) has approached the limit imposed by Nepal Rastra Bank. As of June 30, the average loan-to-deposit ratio of banks was 90.32 percent, according to the organization.
According to the central bank, the total banking sector’s average loan-to-deposit ratio fell to 90.11 percent on Monday. The loan-to-deposit ratio of banks should be decreased to 90% by the end of the current fiscal year, according to Nepal Rastra Bank.
