KATHMANDU, March 17: By mid-March in the current fiscal year 2024/25, banks maintained a credit-to-deposit ratio (CD ratio) of 79.29 percent. Nepal Rastra Bank had directed commercial banks to keep this ratio up to 90 percent. However, internal factors have prevented banks from increasing their loan investments.
By mid-March, 20 commercial banks had raised Rs 6.37 trillion in deposits from the public through various accounts. They had disbursed Rs 4.85 trillion in loans from these collected funds.
Lending slows as banks focus on recovery of loans at fiscal yea...

Nepal Rastra Bank has allowed banks to invest an additional Rs 6.5 billion in loans. However, banks are currently unable to do so as they struggle to recover previously issued loans on time.
The Nepal Bankers’ Association reported that commercial banks have gradually increased both deposit collection and loan investment over the past 10 months. By mid-September in the current fiscal year, banks collected Rs 5.79 trillion in deposits. By mid-March, they increased this amount by Rs 248.47 billion, reaching Rs 6.37 trillion. However, in Ashoj (mid-September to mid-October), deposit collection fell to Rs 5.92 trillion.
Similarly, banks saw deposits decline to Rs 5.93 trillion in Kartik (mid-October to mid-November) compared to Ashoj. However, deposits increased to Rs 5.93 trillion in Mangsir (mid-November to mid-December). Since then, deposit collection has continuously improved, reaching Rs 5.98 trillion in Poush (mid-December to mid-January) and further rising to Rs 5.99 trillion in Magh (mid-January to mid-February).
Similarly, banks reduced loan investment in Ashoj and Kartik compared to Bhadra. They invested Rs 4.68 trillion in loans in Bhadra, which dropped to Rs 4.679 trillion in Ashoj but then rose to Rs 4.721 trillion in Kartik. In the next three months - Poush, Magh, and Falgun (mid-February to mid-March) - banks steadily increased loan investment. By mid-January, it reached Rs 4.81 trillion, grew to Rs 4.827 trillion in Magh, and further enjoyed a rise to Rs 4.85 trillion in Falgun.