Deposits in commercial banks up in Q4
KATHMANDU, AUG 24 -
Commercial banks which struggled through most of fiscal 2010-11 mobilising liquidity saw their problems ease some during the last quarter. Deposits grew in the last three months with increased government spending and transfer of deposits from B and C class financial institutions.
According to bankers, their deposit collection surged towards the end of the year amid a series of revelations of mismanagement in B and C class financial institutions sending alarmed depositors running to transfer their savings to older banks.
Government-owned and older banks like Rastriya Banijya Bank (RBB), Nabil, Standard Chartered and Everest posted significant growths in their deposits in the last quarter. “People want their hard earned money to get parked in a safe haven, so they are choosing old banks practicing prudent financing and having a robust balance sheet,” said Diwakar Poudel, head corporate affairs, Standard Chartered Bank. He termed this phenomenon “flight to quality”.
CEO of NIC Bank Sashin Joshi said that the problems seen in a few development banks and finance companies had made an impact on depositors’ psychology, prompting them to shift their deposits to older banks.
RBB, which has the highest deposit base among commercial banks, saw its deposits rise 13.44 percent in Q4 against a growth of 4.02 percent in the previous quarter. The bank collected deposits worth Rs 8.75 billion during Q4. RBB’s total deposits as of the end of fiscal 2010-11 amounted to Rs 73.92 billion.
Krishna Prasad Sharma, deputy general manager of RBB, said that the surge in deposits was due to the budgetary release made by the government to its various agencies. “The government releases its budget to its agencies during the last quarter of the fiscal year, and their accounts are credited,” he said.
Another state-owned bank Nepal Bank Limited was not far behind RBB in terms of deposit collection. NBL collected more than Rs 4.47 billion in deposits during Q4. Its total deposits at the end of fiscal 2010-11 stood at Rs 46.80 billion, up 10.56 percent from the previous quarter. Agricultural Developm-ent Bank saw its deposits going up 6.17 percent in the last quarter against a growth of 1.61 percent in previous quarter.
Source: Kantipur
Commercial banks which struggled through most of fiscal 2010-11 mobilising liquidity saw their problems ease some during the last quarter. Deposits grew in the last three months with increased government spending and transfer of deposits from B and C class financial institutions.
According to bankers, their deposit collection surged towards the end of the year amid a series of revelations of mismanagement in B and C class financial institutions sending alarmed depositors running to transfer their savings to older banks.
Government-owned and older banks like Rastriya Banijya Bank (RBB), Nabil, Standard Chartered and Everest posted significant growths in their deposits in the last quarter. “People want their hard earned money to get parked in a safe haven, so they are choosing old banks practicing prudent financing and having a robust balance sheet,” said Diwakar Poudel, head corporate affairs, Standard Chartered Bank. He termed this phenomenon “flight to quality”.
CEO of NIC Bank Sashin Joshi said that the problems seen in a few development banks and finance companies had made an impact on depositors’ psychology, prompting them to shift their deposits to older banks.
RBB, which has the highest deposit base among commercial banks, saw its deposits rise 13.44 percent in Q4 against a growth of 4.02 percent in the previous quarter. The bank collected deposits worth Rs 8.75 billion during Q4. RBB’s total deposits as of the end of fiscal 2010-11 amounted to Rs 73.92 billion.
Krishna Prasad Sharma, deputy general manager of RBB, said that the surge in deposits was due to the budgetary release made by the government to its various agencies. “The government releases its budget to its agencies during the last quarter of the fiscal year, and their accounts are credited,” he said.
Another state-owned bank Nepal Bank Limited was not far behind RBB in terms of deposit collection. NBL collected more than Rs 4.47 billion in deposits during Q4. Its total deposits at the end of fiscal 2010-11 stood at Rs 46.80 billion, up 10.56 percent from the previous quarter. Agricultural Developm-ent Bank saw its deposits going up 6.17 percent in the last quarter against a growth of 1.61 percent in previous quarter.
Source: Kantipur
