Loan Disbursement Declines in Kartik, Increases by NPR 112 Billion in Four Months

In the first four months of the current fiscal year, banks disbursed loans totaling NPR 112 billion. However, compared to other months, loan disbursement declined by NPR 1 billion in Kartik, according to bankers.

By the end of Ashoj (mid-October), commercial banks had disbursed NPR 4,682 billion in loans, which decreased by NPR 1 billion to NPR 4,681 billion in Kartik. Previously, by the end of the last fiscal year (mid-July), banks had disbursed NPR 4,569 billion in loans.

In Shrawan (mid-July to mid-August), loan disbursement increased by NPR 2 billion, followed by an increase of NPR 54 billion in Bhadra (mid-August to mid-September) and NPR 56 billion in Ashoj. By Kartik, the total loan disbursement stood at NPR 4,681 billion, reflecting a four-month increase of NPR 112 billion.

According to Nepal Rastra Bank data, loans disbursed to the private sector by banks and financial institutions grew by NPR 128.65 billion (2.5%) by the end of Ashoj. In the same period last year, loan disbursement had increased by NPR 109.03 billion (2.3%).

During the same period, deposits in banks and financial institutions grew by NPR 170 billion (2.6%) this year, compared to NPR 158.5 billion (2.8%) last year.

Currently, there is approximately NPR 700 billion in liquidity in the banking system. While this liquidity could be utilized by the government to create jobs and undertake development projects, it has not been effectively utilized.