Credit flow of commercial banks up by Rs 166 billion in first two months of FY 2021-22

KATHMANDU: The credit flow of the commercial banks soared during the period of the first two months of the current fiscal year.

As per statistics of the Nepal Bankers Association (NBA), the credit flow grew by Rs 166 billion during these two months. The report showed that the amounts of credit flow crossed Rs 3872 billion on 16 September up from Rs. 3706 billion on July 23.

As economic activities resumed despite the COVID-19 pandemic, the data revealed that the amount of credit flow sharply rose specifically during the period of mid-August to mid-September.

During the period of mid-July to mid-August, the trend of credit outflow remained in double-digit and the amount recorded up by Rs. 43 billion while in the period of mid-August to mid-September, the amount sprang up by a hefty amount of Rs. 108 billion.

In corresponding to the outflow of credit, the amount of deposit also showed an optimistic figure in the first two months of the current FY. The report showed that the amount of deposit sprang up by Rs. 13 billion during the period of the current FY. Until July 23, the record of the deposit amounted to Rs. 4158 billion while it accumulated to Rs. 4171 billion by the end of mid-September.