Commercial Banks’ deposits increase by Rs 9 arba, where lending increases only by Rs 4 arba; see detailed figure

When the calendar hit the new year of 2075 B.S., the deposit structure of commercial banks has gone down to Rs 22.63 kharba from Rs. 22.68 kharba during the last week of 2074. However, as the weeks have progressed, the deposits have increased by 0.38% to Rs 22.72 kharba.

Similarly, on the other hand the amount of lending seems to be continually increasing from 2074 till now. However, as we see the figure we can see that the amount of deposits have increased by Rs 9 arba, whereas the lending had increased by Rs 4 arba only.

Given the ongoing liquidity shortage in the market and the pressure to maintain the CCD ratio, the commercial banks seem to be contracting their growth in lending and focusing more on acquiring more deposits. Similarly, noting the increase in deposits, the rate of lending also has gone up making it unattractive for the buyers.

See the detailed figure below: