Bank Lending Rises by Rs 22.74 Billion in a Month

Nepali banks saw an improvement in loan issuance, with commercial banks disbursing Rs 22.74 billion in loans between mid-February and mid-March. In the first eight months of FY 2024/25, total lending by 20 commercial banks reached Rs 4.85 trillion, up from Rs 4.57 trillion in mid-July, according to Nepal Bankers’ Association (NBA).

Bankers attributed the rise in lending to increased imports and margin loans, particularly for raw materials used in edible oil production. Loan disbursement has gained momentum in recent months, reversing earlier declines. Notably, Global IME Bank led in lending growth, while NIC Asia Bank saw a decline of Rs 35.43 billion.

On the deposit side, commercial banks collected Rs 6.03 trillion as of mid-March, with an additional Rs 282.27 billion in the review period. Nepal Investment Mega Bank recorded the highest growth, adding Rs 45.84 billion (11.36%) to its deposits, while NIC Asia’s deposits dropped by Rs 61.86 billion.

Meanwhile, non-performing loans (NPLs) have risen to 4.73% as of mid-February, up from 3.36% a year ago. This has also led to a sharp increase in non-banking assets, which surged by 79.89% to Rs 35.82 billion.