Kathmandu. Credit from banks to the private sector has increased. Nepal Rastra Bank (NRB) has released the data for the 10 months of the current fiscal year.
During the review period, loans from banks and financial institutions to the private sector were rs. It has increased by 368.68 billion (7.3 percent). In the same period of the previous year, such loan was Rs. It had increased by 225.24 billion (4.7 percent).
On a year-on-year basis, credit flow from banks and financial institutions to the private sector increased by 8.4 percent in mid-April 2018. As of mid-April 2018, the share of loans disbursed to the private sector by banks and financial institutions was 63.1 percent and the share of loans to the individual and household sectors was 36.9 percent. In the same period last year, the share was 63.7 percent and 36.3 percent respectively.
During the review period, commercial bank credit grew by 7.6 per cent, development bank by 4.1 per cent and finance companies by 6.5 per cent.
As of mid-April 2018, 14.6 per cent of the loans invested by banks and financial institutions were in the security of current assets (agricultural and non-agricultural goods) and 65.1 per cent in real estate security. As of mid-April 2018, the share of loans disbursed in such collateral was 12.1 percent and 68.5 percent respectively.
In the 10 months of the current fiscal year, loans to industrial production sector increased by 9.0 percent, construction sector by 12.3 percent, wholesale and retail trade sector by 4.9 percent, transport, communication and public service sector by 11.9 percent, service industry by 7.9 percent and consumer sector by 8.8 percent.
During the review period, term loans from banks and financial institutions increased by 5.1 percent, margin loans by 39.3 percent, trust receipt (import) loans by 58.1 percent, higher purchase loans by 4.1 percent, cash flow loans by 3.4 percent and real estate loans (including personal residential home loans) by 5.2 percent, while overseas loans decreased by 12.9 percent.
