Loans decreased, deposits increased, money piled up in banks

Despite an increase in deposits in commercial banks last month, there has been a contraction in loan investment. According to data provided by the Nepal Bankers Association, in the current fiscal year 2080/81, deposits in commercial banks increased by NPR 26.19 billion in Baisakh, while loans decreased by NPR 15.19 billion during the same period.

At the end of Chaitra, the total loan investment of commercial banks, which was NPR 4.53684 trillion, decreased to NPR 4.52164 trillion by the end of Baisakh. However, deposits increased from NPR 5.44191 trillion at the end of Chaitra to NPR 5.46811 trillion by the end of Baisakh.

Rastriya Banijya Bank and Nabil Bank have been leading in increasing deposits. In the ten months of the current fiscal year, deposits increased by NPR 382 billion, with Rastriya Banijya Bank increasing by NPR 65.09 billion and Nabil Bank by NPR 51.71 billion.

Nabil Bank and Prime Commercial Bank have been aggressive in loan expansion. Nabil Bank's loans increased by NPR 42.26 billion, reaching NPR 383.69 billion, while Prime Commercial Bank's loans increased by NPR 27.50 billion, reaching NPR 190.61 billion.

The deposits of Standard Chartered Bank, which reduced loans, also decreased by NPR 8.25 billion, dropping to NPR 114.24 billion. Similarly, deposits of Prabhu Bank decreased by NPR 16.09 billion, reaching NPR 279.85 billion, and those of Machhapuchchhre Bank decreased by NPR 6.09 billion, dropping to NPR 152.19 billion.