BFIs lending to private sector increased 3.3 percent to Rs 153.17 billion in the first 10 months of current FY

Published On: June 10, 2023 09:34 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, June 10: The credit flow from banks and financial institutions (BFIs) to the private sector increased 3.3 percent in the first 10 months of the current fiscal year.

The 10 months’ report on ‘Current Macroeconomic and Financial Situation’ unveiled by Nepal Rastra Bank (NRB) shows that the BFIs issued loans of Rs 153.17 billion during mid-July and mid-April of fiscal year 2022/23. With an ease in liquidity condition, the BFIs in recent days have been stockpiled with adequate amounts of loanable funds.

Of the total amount provided in credit to the non-financial sector, 63.9 percent was issued to the institutional borrowers while the remaining 36.7 percent was lent to individuals and households. While the credit to agriculture sector increased 7.1 percent, those in manufacturing and construction sectors increased 9.1 percent and 9.8 percent, respectively.

Likewise, the credit to realty purchase including home loans increased 4.3 percent and import loans increased 6.2 percent. The overdraft loans, margin loans and hire purchase loans decreased by 66.7 percent, 6.9 percent and 12.1 percent, respectively.


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