BFIs’ private sector lending rises 8.4% in a year, misses NRB target of 12.5%
Summary
Banks and financial institutions increased private sector lending by 8.4% in the last fiscal year, missing Nepal Rastra Bank's target of 12.5%, amidst an economic slowdown and excess liquidity.
Key Points
- Banks and financial institutions increased private sector lending by 8.4% in fiscal year 2024/25, up from 5.8% a year earlier.
- Despite growth, BFIs missed Nepal Rastra Bank's target of 12.5% lending increase for the period.
- Real estate accounted for the largest share of private sector loans at 64.7%, followed by loans for current assets related to agriculture and non-agriculture goods.
- Loans against shares rose by Rs 50.6 billion, a 56.2% increase, driven by big investors in the secondary market.
