Nepal, June 21 -- The credit deposit (CD) ratio of commercial banks in Nepal has declined to as low as 48.30 percent, far below the regulatory ceiling of 90 percent fixed by Nepal Rastra Bank (NRB). Analysts attribute the sharp decline in CD ratio to the difficulty faced by banks to expand their lending.

According to reports from 20 commercial banks, their average CD ratio over the past 11 months fell by 3.77 percentage points. As of mid June this year, the average CD ratio stood at 72.42 percent, down from 76.18 percent in mid July 2025.

NRB data shows that in the first 11 months of the current fiscal year, commercial banks collected additional deposits worth Rs 723 billion. However, they disbursed only Rs 288 billion in new loans dur...