Kathmandu. Banks and financial institutions have disbursed Rs 1,699.49 billion in loans to the industrial sector as of mid-July of the last fiscal year.

According to the Annual Report of the Economic Activity Study of the last fiscal year 2081/82 BS released by Nepal Rastra Bank, the share of credit disbursed to the industrial sector was 30.42 percent.

Of the total industrial loans, the non-food related industries (35.27 percent), electricity, gas and water related industries (26.26 percent), agriculture, forest and beverage industries (21.85 percent), construction industries (11.70 percent), metal products, machinery and electronics industries (4.23 percent) and mining industries (0.69 percent) have been disbursed the percentage.

According to the report, Bagmati Province has the highest amount of industrial credit of Rs 1,280.97 billion or 71.3 percent of the annual credit disbursed under this head. It is followed by Koshi Province at 9.5 percent and Lumbini Province at 8.3 percent. Madhes has 7.5 per cent, Gandaki 1.6 per cent, Karnali 0.2 per cent and Sudurpaschim 1.6 per cent.

Similarly, credit flow to the service sector has reached Rs 2.184 trillion by the end of the last fiscal year. During this period, the share of loan disbursed to the service sector was only 39.1 percent of the total loans from BFIs.

Of the total loan disbursed to the service sector, the wholesale and retail sub-sector (47.3 percent), real estate (12.2 percent), tourism (11.8 percent), finance, insurance and real estate (11.3 percent), education (6.6 percent), transport, storage and communication (3.7 percent), other services (3.7 percent) and health and other social work sub-sectors (3.3 percent).

Bagmati Province has 59.5 per cent share in the loan disbursed under the service sector. Similarly, Lumbini has 10.3 percent, Koshi 10.1 percent and Madhes Province 9 percent. Similarly, Gandaki Province has 6.9 per cent, Karnali Province 1.1 per cent and Sudurpaschim Province 3 per cent.