Commercial Banks in alternative investment

Kathmandu December 6- Due to unfavorable condition in loan advancement sector, commercial banks are prioritizing other alternative investment sectors such as shares, foreign exchange, government bonds, forward transactions etc.

Devastating earthquake in April 25, tarai unrest and Indian blockade has caused troublous condition in the economy that has negatively affected the banking sector. On one side, investment sector has shrinked and on the other side banks are facing excess liquidity problem.

Thus, as the primary banking transaction of deposit collection and loan advancement has contracted for banks to invest, banks are prioritizing alternative sectors to make investment.