CD ratio of 3 commercial banks above 90 percent

KATHMANDU, AUGUST 22 : With a sudden decline in their deposits in the  Nepali month of Shrawan (July16 to August 17), the credit-deposit ratio (CD ratio) of three commercial banks has exceeded the 90 percent limit.  According to the Nepal Bankers' Association (NBA), the CD ratio of Century Commercial Bank, Nabil Bank and Nepal Bank stands at 91.63 percent, 90.92 percent and 90.72 percent respectively. 

No such banks are allowed to float more than 90 percent of the total amount calculated by adding the bonds, credits and deposits ( that are not included in the capital fund) as a loan. 

Crossing the said limit of CD ratio by any commercial bank means it is no longer financially capable to offer a credit facility. 

During the period of July 16 to August 17, a total deposit worth Rs 107 billion flowed outside the commercial banks.  At the end of Ashadh (June 15 to July 16), they had collected Rs 4.541 trillion in deposit which went down to Rs 4.434 billion. at the end of Shrawan. Because of this, the banks are finding hard to maintain their CD ratio within the limit set by the Nepal Rastra Bank.    

List of banks  with their CD ratio