National Cooperative Bank has said that it is in a comfortable position despite lack of liquidity in commercial banks. Speaking to media persons on a visit to the cooperatives organized by the National Cooperative Bank and Nepal Cooperative Society, Chief Executive Officer Badri Guragai said that they are still comfortable at 7 percent as per the regulatory system based on CCD ratio.

As per the details of December 10, the bank’s liquidity position is 17.73 percent and loan-to-deposit ratio is 78.16 percent (excluding share capital and fund amount).

According to the arrangement made by Nepal Rastra Bank, the CD ratio should be up to 90 percent but it is about 11 percent more comfortable than the regulatory arrangement, the bank said.

Chief Executive Officer Guragai also said that the number of people coming to the cooperatives for loans has increased due to lack of liquidity in the banks. The bank has about Rs 50 billion in deposits and Rs 39 billion in loans.

In addition, the minimum capital ratio set by the Nepal Rastra Bank should be 8 percent, while the bank’s capital ratio is 9.51 percent.

National Cooperative Bank has been repaying loans and savings even in the current liquidity crisis. According to Guragai, the chief executive officer, the cooperative banks are also investing in loans along with the return of savings, while the banks have been unable to repay the loans due to lack of liquidity.