Banks Extends Twice the Loans Compare to Deposit Collection; Average CD Ratio 91.24%

Dec 06, 2021 01:49 PM Merolagani

Commercial banks have extended twice the loans compared to their deposit collection. As per the data of Nepal Bankers Association (NBA), the banks collected Rs 7 billion in deposit while extended 14 billion in loan extension in the third week of Mangsir.

In the month, the deposit collection declined by Rs 7 billion while the loan extensions increased by Rs 33 billion.

Accordingly, the CD ratio of the banks is also in increasing trend. As per the data, the banks have average CD ratio of 91.24 percent. The central bank has directed BFIs to maintain CD ratio below 90 percent.

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