By Staff Reporter, Kathmandu, Apr. 11: Deposit collection of the commercial banks has increased after a long time. The commercial banks collected a deposit of Rs. 40 billion in the last week alone. Credit extension used to be greater than deposit collection in the recent past.
This increase has been attributed to the Nepal Rastra Bank policy of refinancing. Releasing of the sum for refinancing facility to COVID-19 pandemic affected industry and commerce has led to the increase in the deposit by Rs 40 billion. This would ease the credit crunch the banking system was facing due to rise in demand of credit .
There is rapid increase in pump money in the economy as it is getting momentum in recent days. According to the data of Nepal Banker Association, commercial banks have collected Rs 40 billion just in third week while they had taken a month to collect the same in previous month.
Meanwhile, the credit was limited to Rs 38 billion in the same period.
The banks had collected Rs 24 billion till 26 March while they had released Rs. 51 billion in credit.
However, till the 2nd of April, the banks collected Rs 64 billion and released Rs 89 billion.
The 27 commercial banks which are in operation had collected the deposit of Rs 3,826 billion until the end mid-March. It was increased by Rs 24 billion to reach Rs 3,850 billion in the end of 26 March.
The banks had mobilised Rs 3,412 billion credit till 12 March, while they had increased by Rs 51 billion to reach to Rs 3462 in March 26.