Loans from banks and financial institutions have increased. Overall, a total of Rs. 4219.61 billion was disbursed by commercial banks, development banks and finance companies till the end of the current Fiscal Year. Compared to last year, the credit growth rate of banks has increased by 30 percent. In the first month of last year, a loan of Rs. 32.45 billion was disbursed.
The share of wholesalers and retailers in the total debt is higher. According to the Nepal Rastra Bank, loans worth Rs. 840.71 billion have been disbursed to the sector in the first month of the current fiscal year. This is 19.92 percent of the total loan. Compared to last year, credit flow to the sector has increased by 28.90 percent. Last year, it was Rs 652 billion.
Bankers say that the demand for loans in such sectors is high due to the relatively high consumption of consumer goods. It is estimated that about 80 percent of the remittances entering Nepal will be spent on consumption. Chairman of the Nepal Bankers’ Association, Bhuwan Kumar Dahal, says that most of the customers take loans in the wholesale and retail business of food, clothing and footwear almost every month.
However, the demand for loans has also increased due to the increase in the import of such items in the market as the tenth is approaching, he said. Dahal, who is also the chief executive officer of Sanima Bank, said that imports have increased in August and September targeting the tenth. “That’s probably why the demand for loans has increased. The share of debt in wholesale and retail, including food items, has always been high.
Apart from this, banks have also invested well in other sectors including agriculture, ‘he told Annapurna. It has a lot of investment in the market.
The second largest share of the total debt is in agriculture, forestry and beverage products. Such loans accounted for 16.46 percent of the total loans so far. Of this, Rs 695 billion has flowed. This is an increase of 25.35 percent over the previous year. 554 billion in the same period of the previous year.
The share of agriculture is less as the different types of headings under agriculture are mentioned separately in the data of NRB. Combining agriculture and forest products, fisheries and agro-forestry and post-processing of beverages together, the share of agriculture title seems to be higher. Loans of Rs. 186 billion have flowed into the hotel and restaurant sector.
This is 4.42 percent of the total debt. Compared to last year, credit has increased by 24.98 percent. Last year, such loans amounted to Rs. It was Rs 150 billion. In the first month of the current fiscal year, the highest growth rate was in the fisheries business out of the total credit extended by banks and financial institutions. Most of the agricultural sector includes fisheries, minerals and forest products.
In fisheries alone, the additional credit growth rate has increased by 76.63 percentage points. 5.38 billion in the same period of the previous year. However, Rs. 9.51 billion has been disbursed in the same period of the previous year. Although the overall growth rate of fisheries is higher, the share of total sectoral credit is low, according to the NRB. Forest products are included.
In fisheries alone, the additional credit growth rate has increased by 76.63 percentage points. 5.38 billion in the corresponding period of the previous year. However, Rs. 9.51 billion has been disbursed in the corresponding period of the previous year. Although the overall growth rate of fisheries is higher, the share of total sectoral credit is low, according to the NRB. Forest products are included.
In fisheries alone, the additional credit growth rate has increased by 76.63 percentage points. 5.38 billion in the corresponding period of the previous year. However, Rs. 9.51 billion has been disbursed in the corresponding period of the previous year. Although the overall growth rate of fisheries is higher, the share of total sectoral credit is low, according to the NRB.
During this period, loans amounting to Rs. 278 billion have been disbursed for agriculture and forest products. Last year, it was only Rs 187 billion. Similarly, Rs 9.20 billion has been disbursed in the mining sector and Rs 416 billion in the construction sector. Similarly, banks have invested Rs 65 billion in metallurgical products, machinery and electronic goods and maintenance.
Banks lent Rs 333 billion in finance, insurance and real estate. Similarly, electricity, gas and water loans have gone up by Rs 210 billion and consumer loans by Rs 235 billion. Apart from this, Rs 176 billion has been invested in other services. The credit flow has increased as the transport business has gradually expanded out of the influence of Kovid in recent times. Meanwhile, banks have disbursed Rs 97.19 billion in transport, communication and public services.