REPUBLICA KATHMANDU, July 4 Commercial banks have slowed down their loan investment as they prepare to close their accounts at the end of the current fiscal year. Deposit flow in the banking system, however, has increased amid rise in government spending. Data compiled by Nepal Bankers Association (NBA) shows that 28 commercial banks extended Rs 17 billion in the past three weeks (between June 8 and June 29), while their deposit rose Rs 41 billion in the same period. With this, total outstanding deposit and loans of these commercial banks has reached Rs 2,377 billion and Rs 2,080 billion as of as of June 29. The recovery in deposit mobilization by commercial banks, who have been suffering from the shortage of lendable fund since long, comes in the wake of the rise in government expenditure at fiscal year-end. Increased government spending pumps more cash into the banking system. According to the data of Financial Comptroller General Office, the government has so far spent 54.26 percent of the capital budget allocated for the current fiscal year. The government has spent Rs 181.88 billion out of Rs 335.18 billion allocated for development spending for FY2017/18. A lion's share of such fund was spent in the past two months. Despite deposits growth, bank lending has slowed in recent days. Bankers say that the slowdown in lending at the fiscal year-end is a natural phenomenon in the banking industry. “Since most of the banks focus on recovery of their loans in the last month of the fiscal year, lending slows down during this time,” Bhuvan Dahal, CEO of Sanima Bank Ltd, said. According to bankers, many investors also do not seek loans during this time when business firms close their book and accounts. Banking industry has been seeing shortage of lendable fund in recent months due to mismatch in their deposits and loan growth. As banks expanded their lending investment sharply despite slow growth in deposit, the credit to core capital cum deposit (CCD) ratio of many banks have reached a saturation level. Nepal Rastra Bank (NRB) requires banks to maintain CCD ratio of 80 percent. Many banks even saw their CCD ratio touching the upper limit, leading to a sharp rise in deposit rates. However, even the increment in deposit rates to over 13 percent failed to bring adequate deposits into the banking system. The skyrocketing interest rates prompted bankers to cap their saving rate at 7 percent and fixed deposit at 12 percent.

Video replays are being used by referees for the first time at the 2018 FIFA World Cup to help make key decisions. Even though technology has been introduced to the game with the intention of causing as little interruption to the game as possible, it has still attracted criticism for breaking up play.

KATHMANDU, May 17: Remittances growth slowed to 6.3 percent in the third quarter of the current fiscal year 2016/17, down from 13 percent in the corresponding period of the last fiscal year.

KATHMANDU, March 18: Growth rate of remittances inflow continued to decline in the first seven months of the current fiscal year.

KATHMANDU, Jan 30: Top officials at the National Reconstruction Authority (NRA) have said that the NRA's failure to hold trainings for masons and produce new masons while at the same time carrying out surveys for identifying the earthquake victims has led to a serious shortage of masons in the 14 worst quake-affected districts, further delaying the overall task of reconstruction.

Inflation slows to 4.8 percent

December 17, 2016 06:57 am

KATHMANDU, Dec 16: Following a ‘spiralling rise in prices’ in the last fiscal year due to prolonged tarai unrest and unofficial economic blockade in the last fiscal year, the inflation has come down to 4.8 percent in the mid-November this year.

Remittance growth slows to 3.2 percent

November 19, 2016 00:10 am

KATHMANDU, Nov 19: Remittances inflow grew by only 3.2 percent in the first quarter of the Fiscal Year 2016/17 compared to 24 percent growth rate in the corresponding period of the last fiscal year.

KATHMANDU, Nov 5: The Nepal Tourism Year 2011 campaign had set a target of welcoming one million foreign tourists into the country and giving a major boost to inbound tourism. But the outcomes seem to be in the opposite direction, as outbound tourism has witnessed healthy growth in the past five years while tourist arrivals have witnessed negative growth in the past three years.

KHAZER, Oct 18: Iraqi and Kurdish commanders said Tuesday they paused their advance on Mosul, a day after the start of a massive operation to retake the Islamic State-held city, which is expected to take weeks, if not months.

Remittance growth slows

August 27, 2016 09:31 am

KATHMANDU, Aug 26: The number of people going abroad to work fell last year, pushing the growth rate of remittance inflow down in Fiscal Year 2015/16.