Non-residential construction lending includes loans issued for building of infrastructures such as business complexes and shopping malls, while residential construction lending includes home loans provided by the banks.[break]
The central bank data shows that 31 commercial banks issued credit worth Rs 2.02 billion to the non-residential construction sector within mid-July and mid-September, while residential construction sector received loans of Rs 458 million in the same period.
Commercial banks´ lending to the non-residential construction sector declined by Rs 280.4 million in the first two months of last fiscal year - down 4.2 percent - while credit to the residential construction sector remained unchanged at Rs 18.5 million in the same period.
The latest NRB statistics also shows that the credit outflow of commercial banks to the realty sector went up by Rs 1.91 billion within mid-July to mid-September period, marking a growth of five percent. Commercial banks lending to the sector had gone down by Rs 1.2 billion or 3.2 percent in the first two months of the last fiscal year.
Among others, commercial banks issued auto loans of Rs 300.5 million within mid-July and mid-September, recording a growth of 4.2 percent.
NRB statistics also shows that commercial banks´ lending to the education sector increased by Rs 100.2 million within mid-July and mid-September, marking a growth of 1.1 percent.
Sector-wise breakdown of commercial banks lending shows that construction sector received the largest chunk of Rs 2.95 billion in loans - up 5.7 percent - mainly due to increased credit outflow to non-residential construction sector. In the same period last fiscal year, commercial banks´ lending to the construction sector had gone down by 0.9 percent or 435.3 million.
NRB data shows that the transportation, communications and public services sector received second largest chunk of bank loans in the mid-July to mid-September period, with credit to the sector standing at Rs 925.9 million. This was followed by the agricultural sector which received credit worth Rs 750.2 million from commercial banks.
However, lending to wholesalers and retailers shrunk by Rs 1.24 billion, while credit outflow to the services industries went down by Rs 178.5 million in the first two months of the current fiscal year.
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