KATHMANDU, March 29: The banks and financial institutions (BFIs) have been under a cushion of liquidity position with an increase in deposit collection compared to their lackluster lending.
According to Nepal Rastra Bank (NRB), the deposit collection of BFIs was recorded at Rs 5.410 trillion as of Tuesday, probably the all-time high till date. The deposit collection was over Rs 5.40 trillion in the past one week. Of the amount, commercial banks hold deposits of Rs 4.771 trillion.
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The credit expansion of BFIs however has appeared slow compared to the deposit collection. As of Tuesday, the BFIs lent Rs 4.814 trillion.
The credit-deposit ratio was recorded at 85.63 percent, which is below the NRB’s mandatory limit of 90 percent.
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