Kathmandu. Banks' loan-to-deposit ratio (CD ratio) has risen sharply. Nepal Rastra Bank (NRB) had implemented 90 percent CD ratio by scrapping 85 percent CCD in the current fiscal year. NRB has given time to the banks to maintain 90 percent till mid-July.

However, banks are increasing their efforts to reduce the risk. Over a period of one month, NCC Bank, Nepal Bangladesh Bank, Bank of Kathmandu, Prabhu, Kumari, NMB, Citizens Century, Laxmi, NIC Asia, Sanima, Siddhartha, Krishi Vikas and Civil Bank have increased the CD ratio.

Similarly, 13 commercial banks have reduced their CD ratios. Mega, Standard Chartered, Prime Commercial, Nepal SBI, Everest, Machhapuchhre, Nepal Investment, Sunrise, Nepal Bank, Global IME, Himalayan, Rastriya Banijya Bank and Nabil Bank have reduced their CD ratios.

So far, the highest CD ratio is with Prime Commercial Bank and the lowest is with Standard Chartered Bank. Prime has a CD ratio of 98.58 percent, while Standard Chartered Bank has 80.44 percent.

Chief Executive Officer (CEO) of the Nepal Bankers' Association, Anil Sharma, says that looking at the current situation, it is a challenge for the banks to maintain the CD ratio limit of 90 percent.