Commercial banks flush with funds as inflow of deposits continues

ShareSansar, July 25:

Deposits at commercial banks continued to rise in the first week of the new fiscal year. Private money has been pouring into commercial banks more or less consistently since the last two months.   

Commercial banks’ deposits grew by Rs 7 billion in the first week of Shrawan. Meanwhile, the growth in deposits has been instrumental in allowing the banks to dish out loans more freely as indicated by the figures in the table below.

With the banks flush with cash and the Nepal Rastra Bank’s new monetary policy decreasing the Cash Reserve Ratio and SLR, it is obvious that investors will continue to enjoy easy access to funds in the upcoming days.

In addition, the increasing liquidity is bound to pile pressure on the banks to decrease interest rates both on deposits and loans.

                                                   Rs. In billion (Arba)