KATHMANDU, Dec 7: Nepali banks have started receiving some respite in their liquidity position with an increased deposit collection recently.
According to the Nepal Bankers’ Association (NBA), the commercial banks in the last week, as of Friday, gathered deposits of Rs 11 billion. The deposit collection has now reached Rs 4573 billion. The NBA records show that banks have deposits of Rs 4478 billion in mid-July, the beginning of the current fiscal year.
The loan amount during the past one week rose only Rs 1 billion. During the period, the lending by banks increased from Rs 4222 billion to Rs 4223 billion.
Citing the liquidity shortage, banks have increased their lending rates by a notable amount since mid-October. The private sectors have been complaining that the hefty interest rate has hit the production business and commercial activities largely, which has resulted in the possible risk of taking the economy into recession.