BFIs’ lending on share-backed loans soars to Rs 167.85 billion, double in three years
Summary
Banks and financial institutions have sharply increased lending against shares as collateral, with outstanding loans reaching Rs 167.85 billion by mid-September. The figure has more than doubled in three years despite volatility in the stock market.
Key Points
- Banks and financial institutions have issued Rs 167.85 billion in share-backed loans by mid-September this year.
- The amount has more than doubled from Rs 76.53 billion three years ago and rose from Rs 91.32 billion in mid-September FY 2023/24.
- Commercial banks accounted for Rs 144.46 billion of the total, while development banks and finance companies lent Rs 19.78 billion and Rs 3.60 billion, respectively.
