Deposits and loans of BFIs increased by 8.2 % and 7.1% respectively in FY 2015/16

According to Current Macroeconomic and Financial Situation of Nepal (CMES) report published by Nepal Rastra Bank, deposits at BFIs increased by 8.2 percent in the review period compared to a growth of 5.9 percent in the same period of the previous year. Deposits of commercial banks, development banks and finance companies increased by 8.8 percent, 4.7 percent and 7.4 percent respectively in the review period. Likewise, credit to the private sector increased by 7.1 percent in the review period compared to an increase of 10.5 percent in the same period of the previous year. In the review period, private sector credit from commercial banks and development banks increased by 8.3 percent and 3.3 percent respectively. However, such credit from finance companies decreased by 0.9 percent in the review period. Of the total lending of the commercial banks, the credit to small and medium enterprises is only 2.7 percent (Rs. 31.62 billion) in the review period. T. R. (Trust Receipt) loan extended by commercial banks decreased by 7.8 percent (Rs. 4.43 billion) in the review period compared to a growth of 21 percent in the same period of the previous year. This is mainly attributable to the contraction in imports accompanied by disruption in border points and the unrest in southern plain.