Kathmandu. Deposits of Rs 8 billion have been collected in banks and financial institutions on the same day. According to Nepal Rastra Bank, Rs 8 billion has been collected in one day. On the same day, credit flow from banks and financial institutions declined by Rs 2 billion.

As banks and financial institutions have been running out of investment (liquidity) in recent times, banks seem to be focusing on collecting deposits by reducing the flow of credit. This tactic of financial institutions did not work even though they tried to attract depositors by raising interest rates on deposits in Falgun. Banks and financial institutions had agreed not to raise interest rates on deposits in Chait as deposit collection did not pick up speed even after raising interest rates on deposits. The problem of lack of liquidity remained the same as the collection of deposits could not increase despite the increase in interest rates in February. Similarly, the CD ratio has not improved much.

NRB has directed the banks to reduce the CD ratio below 90 percent by the end of the current Fiscal Year (FY) 2078/79 through monetary policy. However, the average CD ratio of banks is still 90.47 percent.

Banks and financial institutions have collected Rs 491 billion in deposits and Rs 4696 billion in loans from such institutions, according to Rastriya Bank. Out of the collected deposits, Rs. 43.33 trillion has been collected from commercial banks and Rs. 568 billion from other banks and financial institutions. Similarly, credit of Rs. 41.69 trillion has been disbursed from commercial banks till that day. Out of the disbursed loan, the remaining Rs. 528 billion has been disbursed from other banks and financial institutions.