Despite an increase in credit activity, Nepal’s banks currently hold substantial cash reserves. Bankers attribute the rise in credit not to a widespread economic recovery, but to specific factors like growing import expenses. The approaching festive season is also fueling demand, and a depreciation of the Nepali currency is contributing to increased borrowing. These elements are collectively driving the observed credit growth within the nation. Experts suggest the current situation doesn’t necessarily indicate a robust economic turnaround, but rather a response to immediate financial pressures and seasonal trends within Nepal. The increase is therefore considered circumstantial rather than reflective of fundamental economic improvement in Nepal.