Kathmandu.  The liquidity crunch in the banks since the beginning of the financial year has not been resolved yet. Banks and financial institutions have taken short-term loans of Rs. 98.22 billion from NRB through Permanent Liquidity Facility (SLF). This is the second largest amount taken by banks through SLF on the same day. Earlier, on April 11, banks and financial institutions had availed the highest daily SLF facility of Rs 1.99 billion.

According to government data, banks and financial institutions have borrowed Rs 659 billion through SLF since last July. Of that, about Rs 2.5 trillion is still being invested. SLF is a short-term loan taken by banks and financial institutions from NRB on the security of government bonds. Such a loan can be obtained by pledging a government bond. The maturity period of SLF is maximum 7 days. Banks can avail SLF facility up to 90 percent of their investment in government bonds.