Average CD Ratio Of Banks Climbs To 91 Percent

February 14, 2022 | Investopaper

CD Ratio (Credit-Deposit Ratio) refers to the ratio of loans floated by the BFIs from the total deposits. Banks use the CD ratio to utilize the deposit resources as well as maintain adequate cash for the banking operation. Since deposits are the liability of the bank to the customers, it should give considerable attention to the overall lending from the deposits.

Nepal Rastra Bank has directed Banks to maintain the CD ratio below 90 percent.  Until Poush’s end 2078 BS, the average CD ratio of banks has climbed to 91 percent. Agricultural Development Bank has the highest CD ratio of 96.19 percent followed by Kumari Bank with a 95.55 percent CD ratio. On the other hand, Prabhu Bank has the lowest CD ratio of 84.82 percent.

The table below presents the CD ratio of commercial banks as of Poush end 2078 BS.

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CD Ratio of Commercial Banks In Nepal

S.N. Bank Name CD Ratio (In %)
1 Agricultural Development Bank Ltd. 96.19
2 Kumari Bank Ltd. 95.55
3 Nepal Investment Bank Ltd. 95.17
4 Prime Commercial Bank Ltd. 94.76
5 Mega Bank Nepal Ltd. 94.3
6 Nepal SBI Bank Ltd. 93.96
7 Nepal Credit and Commerce Bank Ltd. 92.95
8 Bank of Kathmandu Ltd. 92.53
9 Laxmi Bank Ltd. 92.08
10 Citizens Bank International Ltd. 91.74
11 Himalayan Bank Ltd. 91.53
12 Nepal Bank Ltd. 91.49
13 Global IME Bank Ltd. 91.01
14 Civil Bank Ltd. 90.86
15 Century Commercial Bank Ltd. 90.83
16 NMB Bank Ltd. 90.55
17 Machhapuchchhre Bank Ltd. 90.17
18 Nepal Bangladesh Bank Ltd. 89.68
19 Sunrise Bank Ltd. 89.65
20 Nabil Bank Ltd. 89.24
21 Siddhartha Bank Ltd. 89.22
22 NIC Asia Bank Ltd. 88.98
23 Everest Bank Ltd. 88.42
24 Standard Chartered Bank Nepal Ltd. 87.77
25 Rastriya Banijya Bank Ltd. 86.89
26 Sanima Bank Ltd. 86.86
27 Prabhu Bank Ltd. 84.82
Average CD Ratio 91.01

Source: NRB

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