BIRGUNJ (PARSA), Jan 14: Financial institutions have boosted loan investments in Madhesh Province's industrial sector. Nepal Rastra Bank reported that they disbursed loans totaling Rs 121.87 billion in the fiscal year 2023/24.
The central bank’s Provincial Economic Activities Study Report Archives (Madhesh Province) for the fiscal year 2023/24 shows that banks and financial institutions increased loan disbursement to the industrial sector in Madhesh by 11.2 percent compared to the fiscal year 2022/23. They disbursed loans amounting to Rs 109.59 billion in this sector during 2022/23.
Loan disbursement of banks rises while deposits fall
Nepal Rastra Bank's report shows that banks and financial institutions directed 53.68 percent of the total loans in Madhesh Province's industrial sector to non-food product manufacturing industries. They allocated 34.55 percent to agriculture, forestry, and beverage production industries and 4.47 percent to the production of metals, machinery, electronics, and metal goods.
Similarly, Nepal Rastra Bank reported that the construction industry received 5.67 percent of the loans, the mining industry received 1.25 percent, and the electricity, gas, and water industries received 0.46 percent.
In the fiscal year 2023/24, Parsa received the highest loan disbursement in the industrial sector of Madhesh Province, accounting for 63.49 percent or Rs 77.37 billion. As Parsa hosts the largest number of industries in the province, it received the highest share of industrial loans.
Similarly, Dhanusha ranks as the second district with the highest industrial loan disbursement, receiving 9.44 percent or Rs 11.5 billion. Bara received Rs 7.31 billion in loans, while Siraha received Rs 6.1 billion. Sarlahi received Rs 6.48 billion, Mahottari received Rs 5.51 billion, and Rautahat received Rs 4.58 billion. Saptari received the least industrial loan disbursement, amounting to Rs 2.98 billion.
