Product-Wise Lending
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By Sandeep Chaudhary

A Deep Dive into Product-Wise Lending Patterns (Baisakh-End 2082)

A Deep Dive into Product-Wise Lending Patterns (Baisakh-End 2082)

Commercial banks in Nepal have collectively disbursed over Rs. 44 Kharba (Rs. 4,40,808.76 million) in loans as of the end of Baisakh 2082. According to recent data, Global IME Bank leads the banking sector in total product-wise loan disbursement, followed by NABIL Bank (Rs. 4,24,477.14 million) and NMB Bank (Rs. 2,36,887.57 million).

Top Loan Products Across the Industry:

  1. Term Loans dominate the portfolio, with substantial disbursements by banks like Global IME (Rs. 1,83,105.04 million), Kumari Bank (Rs. 1,39,115.58 million), and NABIL Bank (Rs. 1,27,180.77 million). This product remains crucial for long-term financing needs, especially in infrastructure and industrial projects.

  2. Short-Term Working Capital/Demand Loans are another major category. NMB Bank (Rs. 1,28,421.18 million), NABIL Bank (Rs. 1,03,666.91 million), and ADBL (Rs. 1,09,240.50 million) are the highest lenders in this segment, indicating a strong focus on liquidity support for businesses.

  3. Cash Credit Loans have been significantly extended by HBL (Rs. 46,966.39 million), NIC Asia (Rs. 55,651.17 million), and Global IME (Rs. 59,907.76 million), mainly to meet working capital requirements.

  4. Residential Personal Home Loans (up to Rs. 20 million) are rising steadily. NIC Asia tops this category (Rs. 48,704.14 million), followed by Global IME (Rs. 39,941.44 million), and EBL (Rs. 23,061.56 million). This reflects increased home ownership financing.

  5. Real Estate Loans, despite regulatory scrutiny, still represent a key share. NABIL Bank (Rs. 24,242.43 million), Prime Bank (Rs. 22,882.04 million), and NMB Bank (Rs. 25,212.22 million) are notable lenders.

Special Categories:

  • Deprived Sector Loans stand out at NABIL (Rs. 21,073.91 million) and Global IME (Rs. 21,165.87 million), showing compliance with NRB-mandated priority lending.

  • Margin Nature Loans see a sharp concentration at NABIL (Rs. 14,593.52 million), used for share market financing.

  • Trust Receipt/Import Loans are key for trade financing, with NABIL (Rs. 16,727.08 million) and HBL (Rs. 16,964.08 million) leading.

Minor but Essential Products:

  • Overdrafts and Hire Purchase Loans continue to support flexible borrowing.

  • Bills Purchased is a less-used instrument, with nominal exposure except in Global IME (Rs. 609.04 million).

  • Other Products such as innovative loans and structured facilities have strong values in NABIL, Global IME, and Prime.

    The loan distribution reflects a diversified portfolio approach across banks, with a healthy mix of long-term and working capital loans. While traditional products like term loans and overdrafts remain dominant, real estate, home loans, and specialized financing continue to grow. As the economy recovers and expands, this product-wise breakdown highlights areas of strategic importance and lending risk for Nepal’s commercial banking sector.

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