Thursday, July 25, 2013

Deposits at commercial banks continued to rise in the new fiscal year

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)
Date
Deposit
Loan
10/5/2013
927
725
17/05/2013
930
726
24/05/2013
929
728
31/05/2013
933
729
7/6/2013
945
732
14/06/2013
939
733
21/06/2013
955
736
28/06/2013
973
738
5/7/2013
984
741
12/7/2013
1001
744
19/7/2013
1008
749
src : sharesansar