Bank lending in Nepal exceeded Rs 6 trillion as festive shopping and import-related trade boosted credit demand. According to Nepal Rastra Bank, total loans and advances increased by Rs 62.85 billion, or 1.1 percent, during the first two months of fiscal year 2083/84, reaching Rs 6.017 trillion by mid-September 2026. Credit had grown by only 0.6 percent during the same period last year.
The consumption sector accounted for the largest share of lending, receiving Rs 1.361 trillion, or 22.61 percent of total credit. Wholesale and retail trade ranked second, with loans rising by Rs 25.24 billion, or 2.5 percent, to Rs 1.045 trillion. Gold and silver-backed loans increased by 3.5 percent to Rs 132.35 billion, while credit-card lending rose by 6.6 percent to Rs 8.59 billion.
Nepal Bankers’ Association President and Machhapuchchhre Bank CEO Santosh Koirala said demand for loans typically rises during major festivals such as Dashain and Tihar as consumer spending and business activity increase. Businesses borrow to purchase and import goods and expand trade. However, floods and landslides affecting border routes with China have disrupted supplies.
Agricultural lending declined by Rs 9.21 billion, or 2.2 percent, to Rs 401.22 billion, despite overall credit growth. In contrast, lending to manufacturing increased by Rs 18.08 billion to Rs 948.41 billion. Loans to the electricity sector rose by 1.9 percent to Rs 514.10 billion, while construction lending increased by 3.7 percent to Rs 284.53 billion.
Service-sector lending grew by 2.7 percent to Rs 523.46 billion. Meanwhile, credit extended to the microfinance sector fell by 13.2 percent to Rs 182.69 billion. Agriculture Development Bank spokesperson Himal Paudyal said festive consumption alone would not significantly transform the economy, stressing the need for investment in major infrastructure, new industries and entrepreneurship to stimulate sustainable economic activity.
Summary: Nepal’s total bank lending surpassed Rs 6 trillion in the first two months of fiscal year 2083/84, driven by festive consumption and trade, while agricultural and microfinance lending declined.
