KATHMANDU, Sept 24: The Credit to Deposit (CD) ratio with banks has come down to 87.30 percent from over the threshold of 90 percent a few weeks ago.
According to Nepal Rastra Bank (NRB) records, the CD ratio dropped by 0.29 percent in a single day on Wednesday. The central bank had recorded the CD ratio of Tuesday at 87.59 percent. The NRB has maintained the rule that the bank and financial institutions (BFIs) need to maintain the CD Ratio at a ceiling of 90 percent while issuing loans to their clients.
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The recent improvement in the CD ratio of the BFIs is due to an increase in deposit collection compared to the loans issued. The deposits collection by the BFIs has reached Rs 5.106 trillion, with a single day growth of Rs 16 billion on Wednesday.
Similarly, the total lending of the BFIs has reached Rs 4.723 trillion. The BFIs issued loans of just Rs 1 billion on the day. The latest increase in the interest rates of deposits has attracted the fund to some extent while the borrowers, fearing an increased interest rate on lending, have been reluctant to take more loans from banks, according to bankers.
