Kathmandu. Credit investment to the private sector has increased by only 0.6 percentage points in the current fiscal year 2082-83. According to the data released by Nepal Rastra Bank (NRB), the credit flow to the private sector in the first two months is lower than the same period of the last fiscal year. In the last fiscal year, the loan was invested by 1.2 percentage points.

According to the Nepal Rastra Bank, Rs 35.48 billion has been disbursed in the first two months. As of mid-August, banks and financial institutions (BFIs) have extended loans worth Rs 5,627.56 billion.

Multiple loans on import and share mortgage loans

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According to the central bank, the highest increase in credit investment in the two months of the current fiscal year has been in the import sector (trust receipts and import loans). Credit investment to this sector increased by 6.7 percentage points in the first two months of the current fiscal year. In the first two months, Rs 8.44 billion has been extended to the sector. As of mid-September, banks and financial institutions have disbursed Rs 133.62 billion in loans to the sector.

Similarly, the stock market is the second sector with the highest loan investment in the first two months of the current fiscal year. Margin nature loans to share mortgages rose 3.5 percent in the two months. In the first two months, banks and financial sector have extended loans worth Rs 4.90 billion. In the first two months of the current fiscal year, loans worth Rs 145.60 billion have been invested in the sector.

The third sector with the highest number of loans is the personal home loan. Such loans have increased by 2.3 percentage points in two months, according to the NRB. Personal home loans increased by Rs 9.79 billion in the first two months. As of mid-September, banks and financial institutions have invested Rs 4.27 billion in personal home loans.

Cash credit loans also increased by 1.7 percentage points during the period. Such loans have increased by Rs 11.12 billion in the first two months. During this period, loans worth Rs 661.83 billion have been invested in this sector.

According to the central bank, term loans also increased by 1.1 percentage points in two months. In the first two months, such loans amounted to Rs 23.22 billion. As of mid-August, such loan investment has reached Rs 209.67 billion.

Hire purchase loans for vehicle purchases also increased by 0.5 percentage points during this period. In the last two months, banks and financial institutions have provided loans worth Rs 59.36 crore to buy vehicles. Such loan investment has reached Rs 129.28 billion till mid-September.

According to the NRB, the loan towards working capital loan has also increased by 0.3 percentage points in the first two months of the current fiscal year. Two loans worth Rs 2.28 billion have been invested in this sector. As of mid-September, banks and financial sector have invested Rs 823.29 billion in loans in the sector.

According to the Nepal Rastra Bank, the investment in other products has also increased by 0.3 percent. In the first two months, Rs 1.53 billion has been invested. As of mid-September, loans worth Rs 545.90 billion have been invested.

Loans to four sectors declined

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During this period, credit investment has decreased in 4 sectors. According to the data released by Nepal Rastra Bank, real estate loans have decreased by 1.6 percentage points in the first two months of the current fiscal year. Loans to this sector decreased by Rs 4.45 billion in the first two months. As of mid-August, loans worth Rs 271.50 billion have been invested in this sector.

According to the NRB, the overdraft loan investment by the banks and financial sector has also decreased. Credit investment to the sector declined by 3.6 percentage points in the two months. Such loan investment decreased by Rs 4.03 billion in the first two months. The banks and financial sector have invested Rs 107.39 billion in loans in the sector till mid-September.

During this period, the credit investment going towards the priority sector (deprived sector) as determined by the Nepal Rastra Bank decreased by 5.9 percent. Credit investment to this sector decreased by Rs 17.39 billion in the first two months. As of mid-September, banks and financial sector have invested Rs 279.23 billion in loans in this sector.

Similarly, the credit flow towards bill purchase has decreased by 4.4 percent in the first two months of the current fiscal year. In the first two months, the loan investment in this sector has decreased by Rs 54.53 crore. As of mid-September, loans worth Rs 11.82 billion have been invested in this sector.