KATHMANDU, Jan 11: Commercial banks were able to collect additional deposits of Rs 59 billion over the past one week, which has given the banks some cushion at a time when they have been facing a liquidity shortfall.
According to bankers, since last week of December, the banks have started receiving more deposits. Over the past two weeks, banks have collected additional deposits of Rs 73 billion.
Lending slows as banks focus on recovery of loans at fiscal yea...
Apart from adopting a number of measures, Nepal Rastra Bank has recently provided banks with Rs 52 billion for the purpose of refinance loans. Similarly, the central bank has revised the ceiling of funds out of the federal government provided grants to the local governments, which the banks can use in their deposit collection to maintain the credit-deposit ratio from 50 percent to 80 percent.
Speaking at a program on Sunday, Finance Minister Janardan Sharma said the liquidity problems seen in the country’s banking system will be solved by mid-February. “As the government has implemented various measures to address the problem, it is expected to be solved within the next one month,” he said.
As of Sunday since the commencement of the current fiscal year, banks increased their deposit collection by Rs 106 billion while the total deposit has reached Rs 4.307 trillion. Similarly, the loan amount increased by Rs 387 billion over the period and reached Rs 4.108 trillion in total.
