NRB publishes sector wise break down of loans and advances of all commercial banks; which sector has maximum credit concentration?

Bank and Financial Institutions (BFI’s) can play an important role in national capital creation. They collect the public savings in terms of different kind of deposits and deploy such collected deposits on different sectors as prescribed by Nepal Rastra Bank as loan and advances. The banking sector is a vital organ in our national economy and played a dominant role in achieving national objective of reducing imbalance and increasing industrial production. Nepal Rastra Bank as a regulator of BFI’s of Nepal through different regulations and guidelines directs BFI’s to limit their credit on different sectors of economy.

As per the latest information provided by the Nepal Rastra Bank (NRB), the following is the sector wise break down of amount of loans lent by each commercial bank in different sectors.

Commercial Banks have deployed Rs.23.99 Kharba on different sector till Falgun end FY 75/76. They have extended maximum loans under wholesaler and Retailers sector i.e. Rs.5.43 Kharba by the end of Falgun. The maximum concentration of credit is under Wholesaler and Retailers, Manufacturing sectors and others i.e. 22.64%, 19.90% and 11.13% respectively.