Investable resources get frozen in banks amid low credit demand

investable-resources-get-frozen-in-banks-amid-low-credit-demand

, JUNE 30

Owing to the months-long which has discouraged the demand for credit, the with is not only increasing but also getting frozen.

While banks are witnessing a rise in deposits, their credit flow has come down drastically.

As a result, a huge amount of investable financial resource has been lying idle in banks.

across the country witnessed a rise in deposits by Rs 113 billion within three months of the lockdown since it was imposed on March 24. However, credit disbursement from banks has come down by Rs 36 billion over the review period.

As per statistics maintained by Bankers’ Association (NBA) — the umbrella organisation representing the country’s 27 commercial banks — banks had Rs 3.189 trillion in deposits till mid-April which rose to Rs 3.32 trillion by June 25. As per NBA statistics, deposits among banks are increasing every month. While deposits in banks had increased by Rs 25 billion to Rs 3.21 trillion by mid-April compared to mid-March, deposits had increased by Rs 62 billion to Rs 3.276 trillion by mid-June as compared to mid-April.

However, credit disbursement from banks has come down notably during the period.

By mid-April, banks had invested Rs 2.845 trillion in loans.

It decreased by Rs ni


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