Kathmandu. Lately, the lack of investable funds (liquidity) in banks and financial institutions has been increasing. Due to lack of liquidity, banks and financial institutions are now unable to provide new loans. According to Nepal Rastra Bank, the CD ratio of commercial banks is 90.58 percent. This also indicates that banks are currently facing extreme liquidity crunch.

NRB has directed the banks to reduce the CD ratio below 90 percent by mid-July. However, so far these banks have not been able to maintain the CD ratio as directed by the Nation Bank. However, Rs 5 billion has been added to the banks and Rs 2 billion has been disbursed in one day.

NRB has stated that only Rs 3 billion was collected in commercial banks on that day. However, bankers say that Rs 5 billion is like cumin in an elephant's mouth in so many banks and financial institutions.

So far, banks and financial institutions have collected Rs 49.15 trillion in deposits and Rs 4.72 trillion in loans. Out of this, only Rs 43.43 trillion has been collected from commercial banks and Rs 41.72 trillion has been disbursed.