Monetary Policy allows consideration of debentures in calculation of CCD; NIC Asia to get the most benefits from the new policy
Fri, Jul 13, 2018 5:46 AM on Economy, Exclusive, Bonds & Debentures, Stock Market, Latest,
- Puskar Shrestha
The monetary policy unveiled yesterday has brought in many changes to the banking sector. The policy has now allowed the banks to consider debenture amount for calculating the CCD ratio.
Credit to deposit ratio is the ratio of how much a bank lends out of the deposits it has mobilized. So, the availability of the debentures for the calculation of CCD means that the lending capacity of the banks will increase.
The banks currently need to maintain CCD at 80% of the total deposits. As per the reports of the third quarter of the current fiscal year, the following banks will have the increased lending capacity based on their debenture.
|
S No |
Bank |
Debenture (Amt. in '000) |
80% of the capacity |
|---|---|---|---|
|
1 |
NIC Asia Bank Limited |
3,500,000 |
2,800,000 |
|
2 |
Siddhartha Bank Limited |
1,203,520 |
962,816 |
|
3 |
Everest Bank Limited |
1,068,845 |
855,076 |
|
4 |
Citizens Bank International |
500,000 |
400,000 |
|
5 |
Sanima Bank Limited |
370,000 |
296,000 |
|
6 |
Global IME Bank |
400,000 |
320,000 |
|
7 |
Himalayan Bank Limited |
600,000 |
480,000 |
|
8 |
Nepal SBI Bank |
1,000,000 |
800,000 |
|
9 |
Laxmi Bank Limited |
400,000 |
320,000 |
|
10 |
Nepal Investment Bank Limited |
1,550,000 |
1,240,000 |
|
11 |
NMB Bank Limited |
500,000 |
400,000 |
|
12 |
Bank of Kathmandu Limited |
1,000,000 |
800,000 |
|
13 |
Agriculture Development Bank Limited |
920,000 |
736,000 |
|
14 |
Nabil Bank Limited |
300,000 |
240,000 |
|
Total |
13,312,365 |
10,649,892 |
Out of the debentures mentioned above, the debenture of Nepal Investment Bank worth Rs 30 crore will be matured on Ashadh 29, 2075. However, if the status of the debentures floated by the commercial banks are also considered, lending capacity of the banks will increase by Rs 10.65 arba.
As the above mentioned banks have floated debentures amounting to huge sum of money, they are likely to get benefit from the new scheme introduced by the Monetary Policy. Out of the commercial banks, NIC Asia is likely to get the highest benefits as its lending capacity will be increased by a huge margin of Rs 2.80 arba.
As per the third quarter reports, the commercial banks have collected deposits worth Rs 21.90 kharba and have mobilized credit worth Rs 20.02 kharba. The introduction of this provision might act as a great boost for the commercial banks who were having a hard time in keeping the credit to core capital plus deposit ratio under the permissible limit.
