Increasing lending in the private sector, deposits in banks 83 trillion 50 billion

Kathmandu. In the 2 months of the current fiscal year 2083/084, loans from banks and financial institutions to the private sector increased by 1.6 percent (93 billion 52 million) and reached 59 trillion 50 billion 58 million. According to the report on the economic and financial situation up to August published by Nepal Rastra Bank.

In the same period last year, such loans increased by 0.9 percent (Rs. 49 billion 24 crores). On an annual basis, the credit flow from banks and financial institutions to the private sector increased by 7.3 percent at the end of August 2083.

At the end of August 2083, among the loans from banks and financial institutions to the private sector, the share of loans to non-financial institutions was 62.5 percent and the share of loans to individuals and households was 37.5 percent. In the same month of the previous year, this share was 62.8 percent and 37.2 percent, respectively.

During the review period, among the loans to the private sector, the loans of commercial banks increased by 1.7 percent, development banks by 0.6 percent and finance companies by 1.4 percent. At the end of August 2083, 15.6 percent of current assets (agricultural and non-agricultural commodities) were secured by banks and financial institutions while 62.8 percent were secured by real estate mortgages. At the end of August 2082, the share of loans disbursed on such securities was 15.1 percent and 64.3 percent, respectively.

In the two months of 2083/84, among the loans invested by banks and financial institutions, 10.4 percent were loans to the mineral sector, 7.6 percent were loans to the transport equipment production and repair sector, 7.3 percent were to the metal products, devices and electrical goods production and maintenance sectors, 3.7 percent were loans to the construction sector, 2.7 percent were loans to the service industry sector, 2.5 percent were loans to the wholesale and retail trade sectors, 2.1 percent were loans to the transport, communication and public service sectors, industrial products Credit to the sector has increased by 1.9 percent and credit to the consumer sector has increased by 0.2 percent, while credit to the finance, insurance and real estate sector has decreased by 4.7 percent and credit to the agricultural sector has decreased by 2.2 percent.

During the review period, trust receipt (import) loans from banks and financial institutions have increased by 9.4 percent, poor class loans by 4.7 percent, periodic loans by 1.6 percent, real estate loans (including personal residential house loans) by 1.4 percent, demand and other working capital loans by 1.4 percent, and margin loans by 0.8 percent, while cash credit loans by 1.3 percent, surplus loans by 1.2 percent, and higher purchase loans by 0.1 percent.

Deposits in the bank exceeded 83 billion, while the share of savings deposits increased, fixed deposits decreased

During the review period, deposits in banks and financial institutions increased by 0.9 percent (72 billion 80 billion) and reached 83 trillion 49 billion 72 billion. Such deposits increased by 0.5 percent (32 billion 86 crores) in the same period of the previous year. On an annual basis, deposits in banks and financial institutions increased by 14.4 percent at the end of August 2083.

At the end of August 2083, the share of current, savings and fixed deposits in the total deposits of banks and financial institutions was 7.5 percent, 48.0 percent and 34.7 percent respectively. In the same month of the previous year, this share was 5.8 percent, 38.0 percent and 47.9 percent respectively.

At the end of August 2083, the share of institutional deposits in the total deposits of banks and financial institutions was 33.3 percent. At the end of August 2082, the share of such deposits was 35.2 percent.