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BFIs extend credit by 10.3% in five months



bfis-extend-credit-by-103-in-five-months

By TRN Online, Kathmandu, Jan. 21: Outstanding credit of Bank and Financial Institution (BFIs) spurred up by 10.3 per cent in the first five months of the current fiscal year (FY).

The macroeconomic and Financial Situation position issued by the Nepal Rastra Bank (NRB) showed that except for construction, local government and others' loans, the outstanding loan in all other sectors slightly inched up.

Outstanding credit to the agriculture sector increased by 12.1 per cent in the first five months of the current (FY). In mid-December, the amount rose to Rs. 363.5 billion up from Rs. 324.2 billion recorded in mid-July 2021.

Similarly, credit for mining went slightly up by 5.7 per cent in the duration of the first five months. Credit rose to Rs. 9.1 billion by mid-December in the mining, up from Rs. 8.6 billion recorded in mid-July.

The credit in the production sector went up by 10.7 per cent during in-between mid-July and mid-December, from 6.4 billion rupees to Rs. 71.2 billion.

In the meantime, the outstanding credit to the construction sector drastically sild by (- 44.1) per cent during the five months of the current FY. Credit went down to Rs. 229.7 billion in mid-December from Rs. 411.3 billion as recorded in mid-July.

Credit in the metal production, machinery and electrical tools and fitting in mid-December significantly increased by 22.1 per cent. Outstanding credit rose to Rs. 75.7 billion in mid-December up from Rs. 61.9 billion recorded in mid-July.

The credit to transportation equipment production and fitting inched up by 5.8 per cent during the five months of the current FY. The credit rose to Rs 267.2 billion in mid-December up from Rs. 252.4 billion recorded in mid-July.

Credit to wholesalers and retailers spiked up by 10.9 per cent during five months. Credit went up to Rs. 928 billion in mid-December up from Rs. 836.7 recorded in mid-July.

Credit in the finance, insurance and fixed assets spiked by 7.6 per cent during the first five months of the current FY. Credit recorded in mid-December was Rs. 362.8 billion, up from Rs. 337.1 billion recorded in mid-July.

Credit in the service industry went up by 4.9 per cent in the first five months. The credit in mid-December went up to Rs. 37.9 billion from Rs. 36.1 billion recorded in mid-July.

In the meantime, consumable loans outstandingly soared by 415.8 per cent during this period. The consumable loan in mid-December went up to Rs. 785.9 billion from Rs. 152.3 billion recorded in mid-July.

However, credit to the local government and other types of credit slid down by (-8.5) per cent and (-40.7) per cent respectively. The credit to the local government decreased to Rs. 1.4 billion from Rs. 1.5 billion recorded in mid-July. Similarly, other types of credit sild to Rs. 431.6 billion in mid-December from Rs. 727.9 billion in mid-July.