Kathmandu. Even if there is no liquidity crisis in the market, interest rates of banks and financial institutions will not increase. Many banks have not even raised the new interest rates that have been made public at a time when they are feeling the lack of investment capital. Most of the banks have published interest rates with effect from the new year, i.e. April 1, but most of them have continued the old interest rates. Some banks have yet to announce interest rates.

20 commercial banks have published interest rates on Tuesday. According to Bhuvan Dahal, president of the Nepal Bankers' Association and chief executive officer of Sanima Bank, if the interest rate is increased in this difficult situation, there is a fear that the loan installment will not come. He said, ‘Most of the banks in Nepal are under pressure to expand their business. At the same time, there is concern that the loan installments will be stopped from the borrower. '

 This is not to say that the lack of liquidity has not embarrassed the banks. Chairman Dahal says that the interest rate on inter-bank transactions has reached 4 percent only on March 12. He said that about Rs 40 billion will go to the government coffers from the financial sector in mid-April. This has also led to a liquidity crisis in the banks.

According to Santosh Koirala, a member of the working committee of the Nepal Bankers' Association and chief executive officer of Machhapuchhre Bank, it is right for banks to keep interest rates on savings stable at this time. According to him, it is not right to reduce. He speculated that the banks may have been trying to make a profit from the interest rate rate even if the NRB raises the loan-to-capital-deposit ratio (CCD ratio) to 85 percent.