As of February 23, commercial banks mobilized Rs 431 billion in deposits while issuing only Rs 214 billion in loans, resulting in a substantial liquidity surplus of Rs 1.149 trillion available for investment. Despite historically low interest rates, credit demand remains weak amid political uncertainty and subdued private sector confidence following the September 8 Gen Z protests. Nepal Chamber of Commerce President Kamlesh Agrawal said more than 150,000 borrowers have been blacklisted over five years, further slowing lending growth. Although NRB targets 12 percent credit expansion this fiscal year, analysts remain skeptical.
