BFIs lending Rs 42.15 arba as margin loan as of Chaitra 2076; Amount highest as of yet
Fri, Jun 7, 2019 1:02 PM on Economy, External Media, Latest, Stock Market,
The latest data indicates that the banks and financial institutions (BFIs) have the highest margin lending stats till now. As of Chaitra end, 2076 the aggregate lending of BFIs stands at Rs 42.15 arba, out of which Rs 33.29 arba is from commercial banks, Rs 6.7 arba from development banks and Rs 2.1 arba from finance companies.
| Particulars (in lakhs) | Mid July | Mid March | Mid April | ||
|---|---|---|---|---|---|
| 2016 | 2017 | 2018 | 2019 | 2019 | |
| BFIs | 37,681 | 41,170 | 41,129 | 40,846 | 42,152 |
| Commercial bank | 28,429 | 34,420 | 33,208 | 32,549 | 33,298 |
| Development Bank | 5,206 | 3,835 | 5,692 | 6,231 | 6,720 |
| Finance companies | 4,047 | 2,915 | 2,230 | 2,066 | 2,134 |
The amount of margin loan is increasing as the NEPSE index has been increasing since mid-falgun.
Nepal Rastra Bank (NRB) had decreased the margin lending capacity of BFIs to 25% in the Monetary Policy of FY 2075/66. Upon heavy criticism and lobbying from capital market the percentage was raised to 40% of the core capital. Despite the limit set, the BFIs, especially commercial banks were remaining below 25%.
Similarly, Agricultural Development Bank, Standard Chartered Bank and Nepal SBI Bank have not floated any margin loans. Therefore, in aggregate terms the BFIs have lent 38.17% of the approved fund for margin loan.
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