The CCD ratio which was 70 percent by the end of the last FY has exceeded 78 percent in the review period. By the third quarter, the average CCD ratio of the banks is at 78.35 percent.
The CCD ratio increased due to aggressive business expansion by the banks after the first lockdown imposed by the government due to the pandemic caused by COVID-19. However, as the second wave of the pandemic has arrived in the country, restriction in the economic activities might again bring the ratio down.
Nepal Rastra Bank (NRB) has allowed banks to maintain CCD ratio of 85 percent for the current FY through the Monetary Policy. In previous years, such cap was up to 80 percent.
As per the data, 17 banks have CCD ratio below 80 percent out of which Rastriya Banijya Bank has the least of 68 percent.
Meanwhile, the CCD ratio of NIC Asia Bank has neared the cap set by NRB. It has maintained CCD ratio of 84 percent by the third quarter. Similarly, Mega Bank has 83 percent, Sanima Bank and Prime Commercial Bank has 82 percent in CCD ratio.
