Outflow of loans of the commercial banks soared despite the deposit remaining below expectation over the period of the seven months in the current Fiscal Year (FY).
According to the data provided by the Nepal Bankers Association (NBA) published in the second week of February, the outstanding loan went up by 12.22 per cent however the deposit only inched up by 3.7 over the period of the first seven months of the current FY.
The data showed that change in the outflow of loans remained significantly high despite a gloomy performance of the deposit collection over the first seven months.
The data revealed that the commercial bank extended the loan amount to Rs. 4,159 billion till February 18. It was Rs. 3706 in July. This showed that outstanding loans increased by Rs. 453 billion during the period of the last seven months.
Meanwhile, the current data revealed that the deposit collection continued to show despairing performance over the period of the first seven months of the current FY.
The data showed that deposits marginally rose by 3.7 per cent. The amount of deposit recorded on February 18 was Rs. 4312 billion, which was Rs. 4158 on July 23. The amount of deposit went up merely by Rs. 154 billion.
Source : TRN,