The loans extended by banks and financial institutions to the private sector increased by 4.9 percent in the first six months of the current fiscal year, according to the Nepal Rastra Bank (NRB).
As of mid-January, credit flow from banks and financial institutions to the private sector has increased by Rs 192.64 billion.
In the same period of the previous year, such loans increased by Rs 137.33 billion (3.0 percent).
By mid-January, loans to the institutional sector accounted for 63.2 percent, while loans to individuals and households comprised 36.8 percent of the total loans from banks and financial institutions to the private sector. In the previous year, this share was 64.9 percent and 35.1 percent, respectively.
During the review period, commercial banks increased credit flow to the private sector by 4.0 percent, development banks by 4.4 percent, and finance companies by 2.4 percent.
In the first six months of fiscal year 2023/24, loans to various sectors experienced a surge. Loans to the agricultural sector rose by 1.1 percent, industrial production sector by 8.0 percent, construction sector by 4.1 percent, transport, communication, and public service sector by 10.6 percent, wholesale and retail trade sector by 2.0 percent, service sector by 4.5 percent, and consumer sector by 7.0 percent.
