Kathmandu. Deposits in the banking system have not yet increased sufficiently. Banks and financial institutions, which have been suffering from liquidity problems for a long time, are still suffering from the lack of investable funds due to the inability to increase their deposits.

Because of this, most of the commercial banks have reached a situation where they cannot lend, according to the data of Nepal Rastra Bank. According to the Central Bank, the loan-deposit ratio (CD ratio) of Kumari Bank, which merged with NCC Bank, has risen to over 90 percent by the end of December. According to the central bank, the bank's virgin bank ratio is 90.70 percent.

There is a regulation of the central bank that the banks should maintain the CD ratio within 90 percent. However, since Kumari has provided more loans than the National Bank has provided, now this bank has no space to provide loans.

Similarly, 9 other banks have also reached the situation of not being able to provide loans, while some banks are seen to be able to provide loans when their CD ratio is low. For some time, due to high interest rates and other reasons, banks have not been able to provide loans due to lack of demand for loans.

According to the data of Rashtra Bank, it is able to give loans to Krishi, Nabil, Himalayan, Lakshmi, Global IME, Citizens, Prime Commercial, Sunrise and NMB Bank. The CD ratio of these banks is 87.5 percent, 89.36 percent, 87.11 percent, 87.87 percent, 89.41 percent, 87.47 percent, 88.8 percent, 87.27 percent and 87.24 percent of Nabil respectively. CD is the ratio.

By the end of January, the average CD ratio of commercial banks is 86.53 percent. In which the lowest standard chartered bank has a CD ratio of 78.73 percent. Compared to other banks, this bank has more capacity to provide loans.