The banks recorded limited expansion due to fall in demand of loans in the recent time as well as market unfavorable policies of Nepal Rastra Bank.
In the review period, Nepal SBI Bank recorded the highest loan extension of 11.79 percent followed by Nabil Bank with 8.26 percent increment in loan extension and Standard Chartered Bank with 6.16 percent growth in loan extension.
In the meantime, Sunrise Bank and Global IME Bank logged a declined in loan extension. Sunrise Bank recorded 0.51 percent decline in loan extension while Global IME Bank recorded 0.31 percent degrowth in loan extension.
In terms of deposit collection, again, Nepal SBI Bank logged the highest deposit collection. Its deposit collection increased by 19.79 percent during the period. Followed by Rastriya Banijya Bank and Nepal Bank.
Meanwhile, Kumari, Prabhu and Himalayan Bank logged a decline in deposit collection.
As per some bankers due to pressure in capital fund, banks faced problem in business expansion. At present, four banks are in huge pressure in terms of primary capital fund, said Sunil KC, President of Nepal Bankers Association.
Right now, eleven banks have less than 10 percent and four have capital ratio below 9 percent. As a result, the banks had to extend limited loans. We are in talk with NRB to ease the situation, he added.
