The elaborate report on the trend of deposit and lending in the nation’s commercial banks has been unveiled. This is the data reported as of Mangsir 17, i.e. the last working day of the third week. The CD ratio as of this date is 91.24%.
The total deposit went up by Rs. 7 billion in the first week of Mangsir, and the figure is at Rs. 4,226 billion. Rs. 4,109 billion worth of deposit is in local currency while the rest Rs. 117 billion is in foreign currency.
Meanwhile, the total lending has gone up by Rs. 14 billion, and the total figure is at Rs. 4,069 billion. Rs. 3,913 billion worth of lending has been forwarded in local currency while Rs. 156 billion is in foreign currency.
Commercial banks reported a total of 35.31 Arba squeeze in the total deposit collected in Kartik compared to the data reported in Ashwin. On the other side of things, banks have simultaneously been hit by a surge in capital demands from the public and businesses. As the economy restarted its revival from the shutdown, businesses and individuals have started to demand funding from the banks. Commercial banks have reported an increase in total monthly loan forwarding by 36.12 Arba in Kartik.
Combining these two scenarios, there has been pressure on the banks to forward loans at a time when deposit funds are drying up. This has resulted in a competitive drive among banks to raise interest rates to attract deposits. Meanwhile, the central bank has retaliated by restricting massive interest rate hikes to save borrowers and businesses from high-interest expenses.
On the other side, there has been speculation of yet another shutdown to be caused by the spread of the Omicron variant. Two cases of the Omicron variant have been detected today. This speculation is immediately followed by concerns over the liquidity scenario that may change in the nation’s banking system. During the last two waves, the liquidity was in excess, causing banks to lower interest rates.