By TRN Online, Kathmandu, Nov. 21: The Bank and Financial Institutions (BFIs) have mobilized their major share of loans and advances to trade and consumption.

According to the mid-October’s Monthly Statistics of Nepal Rastra Bank (NRB), wholesaler and retailer (Rs. 899.3 billion), agriculture, forestry, and beverage production (Rs.730.19 billion) and consumption (Rs. 636.4 billion) have been listed in the top slot of loan and advances observant.

Subsequent to the wholesaler and retailer, the BFIs have provided a large amount to the finance and hospitality sector. The statistics showed the amount of Rs. 365.2 billion was mobilized for the finance, insurance, and real estate sector, besides the amount of Rs. 193.4 billion has been mobilized in the hotel and restaurant. These sectors have the privilege of refinancing facilities of the NRB.

In addition to agricultural manufacturing, a significant amount has been siphoned towards agricultural production-related loans and advances. The statistics showed that a loan of Rs. 301.6 billion is credited to agricultural and forest and Rs. 10.9 billion credited to the fishery sector.

The industries that support infrastructure development like construction, electricity, communication and metals, machinery have been mobilizing the smaller amount of loans and advances in comparison to trade, consumption, finance, insurance, and real estate.

The lending on the construction which is significant for the creation of fixed assets recorded Rs. 261.217 billion in mid-October. Besides this, lending towards electricity, gas and water recorded Rs. 219.28 billion. In the last couple of years, investment including foreign investment inflow in hydroelectricity has been rising.  According to the NRB survey of 2019/20, the foreign direct investment (FDI stock) has recorded Rs. 54.6 billion in electricity, gas, and water up from Rs. 22.32 of the fiscal year (FY) 2018/19.

However, lending on mining (Rs. 9.2 billion) metal products, machinery and electronic equipment and assemblage (Rs. 71.72 billion), transportation, communication, and public utilities (Rs. 99.3 billion) and local government (Rs. 1.4 billion) is comparatively lower in comparison to others sectors.

The statistic shows that a large amount of loan and advances are getting mobilized for trading and consumption. Meanwhile, lending in mining, infrastructure has been comparatively lower.