KATHMANDU, Nov 30, 2013
Loan flow from commercial banks has started to go up after the Constituent Assembly (CA) elections.
Banks have issued loans worth more than one billion rupees since the election held on November 19. Investment of banks had remained near stagnant over few months until the election due to political uncertainty.
According to bankers, total lending of commercial banks have increased to Rs 788 billion compared to Rs 787 billion recorded last week.
Commercial banks had been witnessing slowdown in demand for credits for the past few months. However, with the CA elections over, investors have started to approach banks for fresh loans.
Banks have mobilized Rs 51 billion in the first quarter of the current fiscal year. However, their lending had remained slow during the quarter. Despite being in a high liquidity position, banks had managed to invest only around Rs 33 billion during the review period.
