Double the demand for NRB's 100 billion rupees deposit instruments

Kathmandu, November 7 — The Nepal Rastra Bank has received double the demand for its deposit instruments issued for NPR 100 billion. In the open market operation held on Wednesday, banks and financial institutions submitted applications amounting to NPR 207 billion. A total of 25 financial institutions participated, submitting 66 bids for the deposit instruments.

The bank has stated that, for the deposits collected on Wednesday, the interest rate offered in the bidding process ranged up to 2.95%. The banks that successfully purchased the deposit instruments had agreed to a minimum interest rate of 2.7225%. On average, the interest rate settled at 2.8671%, according to Nepal Rastra Bank.

Earlier, when the central bank had conducted a similar bidding for NPR 100 billion, only NPR 32 billion worth of applications were received. At that time, banks were more inclined towards taking up permanent deposit facilities, resulting in fewer applications than expected.