Kathmandu. Now most of the banks and financial institutions are marketing loan products. Borrowers are requested to request a loan. Earlier, in order to increase deposit collection in banks and financial institutions, the banks had introduced a plan to increase the savings up to 10 times. Banks, which have been suffering from liquidity problems for a long time, were attracting depositors by introducing various schemes in savings products.

Banks, which have been suffering from liquidity problems for a long time, also stopped lending. However, in recent times, they have started investing in loans by introducing new loan products. Since banks have investable capital, they are inviting borrowers to demand loans.

Recently, deposits in banks are also increasing, while the loan-deposit ratio (CD ratio) of banks is also decreasing. According to Nepal Rastra Bank, currently commercial banks have collected a total of 47 trillion 50 billion rupees in deposits. Deposits in commercial banks increased by 2 billion rupees in one day last week.

Similarly, the loan investment of commercial banks is 42 trillion 68 billion rupees. Banks have now planned to increase loan investment. Similarly, the CD ratio is also decreasing daily. Currently, the average CD ratio of banks is 85.86 percent. A few months ago, the CD ratio of most of the banks was 90 percent and some of them even exceeded the limit of 90 percent. However, now CDs are also gradually decreasing.

Banks and financial institutions have already reduced the interest rate of deposits with effect from March 1st. Commercial banks have reduced only the interest rate on savings, while development banks have reduced both the term and savings.

Commercial banks have kept 11 percent of the term as the same, while they have decided to reduce the interest rate of savings from the current 6.42 to 8.4 percent and maintain it at 6 to 8 percent. Development banks have decided to reduce interest on savings by 0.15 percentage points to 6.6 percent. This is the minimum interest.

Finance companies have also decided to reduce interest on deposits. Finance companies have decided to reduce the interest rate of one-year term deposits by 0.20 percentage points. Banks gradually reducing interest on savings is a sign that liquidity is easy in banks. They are pressuring industrialists to reduce interest.