Temporary decline in bank deposits

ShareSansar, June 19

Deposits in commercial banks have gone down by 6 arba. The decline in deposits has been attributed to the huge shift of money from commercial banking system to Nepal Rastra Bank in the wake of Mega Bank IPO this past week.

As per the law, the money collected from IPO must be deposited at Nepal Rastra Bank for about a week.

As per reports, the 9 kharba 45 arba deposits on June 7 came down to 9 kharba 39 arba on June 14.

The deposits are expected to rise again after the money that went to NRB will return into the commercial banking system on Thursday.

Bank deposits have been rising of late on account of the government spending on development activities. The deposits are expected to rise further as the government must spend its budget for the ongoing fiscal year by the end of Asar, or July 15, 2013.