By Ajay Chhetri, Kathmandu, Nov. 20: Credit to deposit (CD) ratio has consecutively risen in the first quarter of the current fiscal year (FY).

According to the monthly “Banking & Financial Statistics” of the Nepal Rastra Bank (NRB), the ratio of the bank and financial institutions (BFIs) recorded 86.98 in mid-August, 87.61 in mid-September, and 88.51 in mid-October.

The rise in the ratios from 86.98 in mid-August to 88.51 in mid-October has been reflected in the rise in the outstanding credit in the various sectors of the economy.

According to the “Current Macroeconomic and Financial Situation” - NRB data of this first quarter, the outstanding credit to agriculture (9.1 per cent ), mines (6.7 per cent) , productions (7.1 per cent), metal production, machinery and electrical tools and fitting (15.7 per cent), transportation equipment production and fitting (2.2 per cent), transportation, communication and public services (4.8 per cent), wholesaler and retailer (7.5 per cent), finance, insurance and fixed assets (9.6 per cent), service industry (5 per cent) and consumable loan (311.7 per cent) has remained positive.

However, the outstanding credit in the construction (35.4 per cent), local government (8.4 per cent) and other loans (30.4 per cent) has slid down.

The NRB has switched from the credit to core capital plus deposit ratio (CCD) to the credit to deposit (CD) ratio in the current FY.

The BFIs are compliant to maintain a 90 per cent CD ratio.