Kailash Bikas Bank to provide share loan at 12%, signals of excess liquidity
Sun, Aug 20, 2017 9:30 AM on Latest, Featured, Stock Market,
Kailash Bikas Bank Limited (KBBL), leading development bank of Nepal is providing share loan at 12% interest only. As per the advertisement published by the development bank, it will provide loan up to 50% of the market value of the share and processing will be completed within 2 days. The offer will valid for the short period of time.
This offer clearly signals that to some extent, liquidity in the bank is increasing. Furthermore, this may be due to restrictions made by the Nepal Rastra Bank (NRB) for the banks not to include inter-bank lending while calculating credit to core capital-cum-deposit (CCD) ratio which compels the development banks and finance companies to mobilize these funds and there is high chance that these funds will be floated in share market. In past days, the bank has provided 12% interest rate or more interest rate in various fixed deposit accounts.
This offer clearly signals that to some extent, liquidity in the bank is increasing. Furthermore, this may be due to restrictions made by the Nepal Rastra Bank (NRB) for the banks not to include inter-bank lending while calculating credit to core capital-cum-deposit (CCD) ratio which compels the development banks and finance companies to mobilize these funds and there is high chance that these funds will be floated in share market. In past days, the bank has provided 12% interest rate or more interest rate in various fixed deposit accounts.
