Kathmandu. In the last fiscal year, the loan could not be invested as per the target set by the Rastra Bank through the monetary policy. Through the monetary policy of the last fiscal year, the Rastra Bank had set a target of investing 12.5 percentage points in loans. However, in the last fiscal year, only 8.4 percentage points were invested.

Credit investment has increased slightly compared to the previous fiscal year. In the review year, private sector credit from banks and financial institutions increased by 8.4 percent (Rs 423.73 billion). In the previous year, such loans had increased by 5.8 percent (Rs 276.94 billion).

In the review year, the share of loans disbursed to the private sector from banks and financial institutions to the private sector was 62.8 percent and the share of loans to the individual and household sectors was 37.2 percent. It was 63.3 percent and 36.7 percent respectively in the same period of the previous year.

Among the private sector credit, commercial banks grew by 8.6 per cent, development banks by 6.1 per cent and finance companies by 8.4 per cent in the review year. As of mid-July 2018, 64.7 per cent of the loans invested by banks and financial institutions were disbursed against real estate and 14.5 per cent against current assets (agricultural and non-agricultural goods). The ratio was 66.5 per cent and 13.2 per cent respectively in mid-July 2018.

In the fiscal year 2081/82, credit to industrial production sector of banks and financial institutions increased by 7.9 percent, transport, communication and public service sector by 15.5 percent, wholesale and retail trade sector by 3.4 percent, service industry by 12.8 percent and credit to agriculture sector decreased by 0.2 percent.

Term loans from banks and financial institutions increased by 7.1 percent, real estate loans (including personal residential home loans) by 5.9 percent, margin nature loans by 56.2 percent, trust receipt (import) loans by 51.1 percent, higher purchase loans by 3.7 percent and demand and current capital loans by 13.2 percent and overdraft loans by 10.4 percent.