KATHMANDU, Nov 30: Nepal Rastra Bank (NRB) has sought to invest Rs 1.10 billion in fixed deposits of the banks and financial institutions (BFIs).
The central bank in this regard called on the BFIs on Tuesday to bid for the aforementioned amount. The BFIs concerned have been given a maturity of 366 days to keep the money in their fixed deposits.
Revised interest rate corridor system introduced
NRB is offering the commercial banks to accept deposits of Rs 886.40 million in total. Similarly, development banks have been offered to accept fixed deposits of Rs 166.10 million while the central bank has sought to deposit Rs 55.30 million in the finance companies.
Amid a deepening crunch of loanable funds in the country’s banking system, the apex monetary authority has offered the BFIs with the pork-barrel amount for their use. As of last week, the deposit collection by the commercial banks stood at Rs 4.219 trillion while they provided loans of Rs 4.055 trillion.
On an average, the credit-deposit (CD) ratio of banks has reached 90.93 percent, breaching the NRB-set limit of 90 percent.
