KATHMANDU, July 8: Credit disbursed by banks and financial institutions (BFIs) to the private sector has increased by Rs 407.62 billion, marking an 8 percent rise compared to the same period last year. According to Nepal Rastra Bank (NRB), private sector credit has grown from Rs 246.80 billion, from the same period last year.
On a year-on-year basis, credit to the private sector increased by 8.7 percent as of the end of Jestha 2082 (mid-June 2025).
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Of the total credit issued by BFIs to the private sector, 63 percent went to the non-financial institutional sector, while 37 percent was directed toward individuals and households. Last year, these shares were 63.5 percent and 36.5 percent respectively.
During the review period, commercial banks increased their lending to the private sector by 8.4 percent, development banks by 4.7 percent, and finance companies by 6.9 percent.
Regarding loan security, 14.5 percent of the total lending was backed by current assets such as agricultural and non-agricultural goods, while 65 percent was secured by real estate collateral. Last year, these figures were 12 percent and 68.5 percent respectively.
Over the eleven-month period of the current fiscal year, credit flow to various sectors saw notable growth. Lending to the industrial production sector rose by 8.2 percent, while the construction sector experienced a 12.9 percent increase. Similarly, loans to the wholesale and retail trade sector grew by 5.2 percent. The transport, communication, and public services sector saw a 13.5 percent rise in credit, followed by an 8.8 percent increase in lending to the service industry. Additionally, consumer lending expanded by 10.9 percent during the same period.
