Kathmandu. The loan taken by the bank employees has been increasing due to the sluggish loan going to the private sector for a long time. According to the data released by Nepal Rastra Bank in the first three months of the current fiscal year, the loan of commercial banks to its employees has increased by 14 percent.

The pace of credit flow of the bank has been very weak due to the significant decline in the demand for loans from industry, business, real estate and manufacturing sectors for a long time. However, staff loans, which provide cheap interest rates to employees, are growing in double digits every year.

Out of the 20 commercial banks in operation in the first three months of the current fiscal year, 19 commercial banks have extended loans worth Rs 97.79 billion to their staff. Nepal Bank has not made public the data of loans given to its employees during this period.

In the same period of the last fiscal year, 19 commercial banks had disbursed loans worth Rs 85.86 billion to their staff. Although the amount of loans going by banks and financial sector for investment has not increased much in recent times, the ratio of loans taken by employees has increased.

As of the first quarter of the current fiscal year, the average base rate of commercial banks stood at 5.60 percent. The base rate of commercial banks has decreased by 1.74 percent compared to the last fiscal year. The base rate of banks was 7.34 percent in the first three months of the last financial year. Banks have given loans to employees at a lower rate than the base rate.

The employees of the bank have been getting loans at concessional interest rates under various headings. According to a banker, bank employees take the most loans under the headings of ODI, home loan, auto, etc. According to a banker, the employees of the bank are giving loans at an interest rate of less than 4 percent. Banks give it at a lower rate than the base rate. The banker said that the staff gets the loan at the return interest rate of the deposit.

According to Nepal Rastra Bank, Nabil Bank is the bank that has given the highest number of loans to its employees in the first three months of the current fiscal year. The bank has given loans of Rs 12.75 billion to its employees. The base rate of the bank is currently 5.85 percent. The bank has given loans to its employees at a lower limit than this rate. This bank’s loan has increased compared to the last financial year. The bank’s base rate fell by 1.44 percent in a year.

In recent times, the decline in the loan investment of the banks and the continuous fall in the interest rate of the loan has had a direct impact on employee loans. In a year, the base rate of most commercial banks has been reduced from 1.5 percent to 2 percent.

Similarly, Prabhu Bank is the second bank to lend the highest number of employees to this period. The bank has disbursed Rs 11.06 billion during the period.

Similarly, Rastriya Banijya Bank invested Rs 10.62 billion, Laxmi Sunrise Bank Rs 7.19 billion, Agricultural Development Bank Rs 5.79 billion and NIC Asia Bank Rs 5.67 billion.

Similarly, Kumari Bank invested Rs 5.08 billion, Sanima Bank Rs 4.95 billion, Machhapuchchhre Bank Rs 4.88 billion and Nepal Investment Mega Bank Rs 4.41 billion.

Similarly, Himalayan Bank invested Rs 3.92 billion, Global IME Bank Rs 3.63 billion, Everest Bank Rs 3.50 billion and Nepal SBI Bank Rs 3.14 billion.

Similarly, Siddhartha Bank invested Rs 2.88 billion, Citizens Bank Rs 2.73 billion, NMB Bank Rs 2.20 billion, Prime Commercial Bank Rs 2.09 billion and Standard Chartered Bank Rs 1.20 billion.