Know sector wise disbursement of Credit by bank and financial Institutions; Wholesaler and Retailers Business getting major chuck of money from BFI’s
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.
Table: Sector Wise Deployment of Credit of Bank and Financial Institutions
Bank and Financial Institutions (BFI’s) have deployed Rs 22.08 kharba on different sector till now (Jan 2018) whereas this figure was Rs 18.95 kharba last year. This means there is a growth of total 16.6% loan and advance of all BFI’s. This year BFI’s extended maximum loans under wholesaler and Retailers sector i.e. 76.76 arba.
Chart: % Sector Wise Credit of BFI’s (Jan 2018)
The maximum concentration of BFI’s credit is under Wholesaler and Retailers, others and Production sectors i.e. 22%, 17% and 16% respectively. Out of total credit of Rs 22.08 kharba, BFI’s have extended credit Rs 4.9 kharba on wholesaler and retailers sectors. Similarly Rs 3.78 kharba is under others sectors.
Table: Sub-Sector Wise Deployment of Credit of Bank and Financial Institutions
| (Rs. in Ten Lakhs) | ||||
| Headings | 2017 | 2018 | % Diff (12 months) | |
| Jan | Jan | 2017/18 | ||
| Amount | Percent | |||
| 1. Agriculture | 89471.9 | 117239.8 | 27767.9 | 31.0 |
| 2. Mines | 3175.9 | 4949.5 | 1773.7 | 55.9 |
| 3. Productions | 327214.4 | 358521.1 | 31306.6 | 9.6 |
| 4. Construction | 204233.3 | 235502.1 | 31268.8 | 15.3 |
| 5. Metal Productions, Machinery, and Electrical Tools and fitting | 22783.0 | 28191.1 | 5408.1 | 23.7 |
| 6. Transportation Equipment Production and Fitting | 33516.9 | 37271.8 | 3754.9 | 11.2 |
| 7. Transportation, Communications and Public Services | 101578.6 | 116829.4 | 15250.8 | 15.0 |
| 8. Wholesaler and Retailers | 413797.0 | 490442.0 | 76645.1 | 18.5 |
| 9. Finance, Insurance, and Fixed Assets | 152326.1 | 180236.6 | 27910.5 | 18.3 |
| 10. Service Industries | 141682.9 | 174080.0 | 32397.1 | 22.9 |
| 11. Consumable Loan | 73019.9 | 85192.1 | 12172.2 | 16.7 |
| 12. Local Government | 1553.6 | 1566.6 | 13.0 | 0.8 |
| 13. Others | 330779.0 | 378828.9 | 48049.9 | 14.5 |
| Total (1 to 13) | 1895132.7 | 2208851.2 | 313718.4 | 16.6 |
Table: Sub-Sector Wise Deployment of Credit of Bank and Financial Institutions
| (Rs. in Ten Lakhs) | ||||
| Headings | 2017 | 2018 | % Diff (12 months) | |
| Jan | Jan | 2017/18 | ||
| Amount | Percent | |||
| 1. Agriculture | 89471.9 | 117239.8 | 27767.9 | 31.0 |
| 1.1 Farming /Farming Service | 11404.1 | 13421.4 | 2017.3 | 17.7 |
| 1.2 Tea | 3574.4 | 3059.9 | -514.5 | -14.4 |
| 1.3 Animals Farming/Service | 32420.6 | 40156.5 | 7735.9 | 23.9 |
| 1.4 Forest, Fish Farming, and Slaughter | 1331.5 | 1742.9 | 411.4 | 30.9 |
| 1.5 Other Agriculture and Agricultural Services | 40741.3 | 58859.1 | 18117.8 | 44.5 |
| 2. Mines | 3175.9 | 4949.5 | 1773.7 | 55.9 |
| 2.1 Metals (Iron, Lead, etc.) | 1182.2 | 2390.0 | 1207.8 | 102.2 |
| 2.2 Charcoal | 512.5 | 525.2 | 12.7 | 2.5 |
| 2.3 Graphite | 318.4 | 604.2 | 285.8 | 89.8 |
| 2.4 Magnesite | 6.8 | 24.8 | 17.9 | 262.2 |
| 2.5 Chalks | 29.5 | 43.5 | 14.0 | 47.6 |
| 2.6 Oil and Gas Extraction | 562.4 | 455.2 | -107.1 | -19.1 |
| 2.7 About Mines Others | 564.1 | 906.7 | 342.6 | 60.7 |
| 3. Productions | 327214.4 | 358521.1 | 31306.6 | 9.6 |
| 3.1 Food Production (Packing and Processing) | 62783.8 | 60838.3 | -1945.6 | -3.1 |
| 3.2 Agriculture and Forest Production | 17971.5 | 15780.6 | -2190.9 | -12.2 |
| 3.3 Drinking Materials (Bear, Alcohol, Soda, etc.) | 15513.7 | 16243.2 | 729.5 | 4.7 |
| 3.3.1 Alcohol | 10969.4 | 11801.7 | 832.3 | 7.6 |
| 3.3.2 Non-Alcohol | 4544.3 | 4441.5 | -102.7 | -2.3 |
| 3.4 Tobacco | 1051.3 | 475.0 | -576.4 | -54.8 |
| 3.5 Handicrafts | 8308.8 | 8240.6 | -68.2 | -0.8 |
| 3.6 Sunpat | 0.0 | 0.0 | 0.0 | |
| 3.7 Textile Production and Ready Made Clothings | 16390.3 | 13313.4 | -3076.9 | -18.8 |
| 3.8 Log and Timber Production / Furniture | 15781.4 | 18022.2 | 2240.8 | 14.2 |
| 3.9 Paper | 5596.9 | 6506.1 | 909.3 | 16.3 |
| 3.10 Printing and Publishing | 8265.6 | 8683.9 | 418.4 | 5.1 |
| 3.11 Industrial and Agricultural | 0.0 | 0.0 | 0.0 | |
| 3.12 Medicine | 10774.3 | 10638.6 | -135.7 | -1.3 |
| 3.13 Processed Oil and Charcoal Production | 1559.3 | 2223.4 | 664.1 | 42.6 |
| 3.14 Rasin and Tarpin | 1230.3 | 1150.9 | -79.4 | -6.5 |
| 3.15 Rubber Tyre | 510.6 | 550.3 | 39.7 | 7.8 |
| 3.16 Leather | 1834.1 | 1827.3 | -6.8 | -0.4 |
| 3.17 Plastic | 14608.5 | 18427.2 | 3818.7 | 26.1 |
| 3.18 Cement | 43221.7 | 56246.1 | 13024.3 | 30.1 |
| 3.19 Stone, Soil and Lead Production | 8063.4 | 10174.4 | 2111.0 | 26.2 |
| 3.20 Metals - Basic Iron and Steel Plants | 50339.5 | 56498.0 | 6158.5 | 12.2 |
| 3.21 Metals - Other Plants | 4772.3 | 6839.9 | 2067.6 | 43.3 |
| 3.22 Miscellaneous Productions | 38637.2 | 45841.8 | 7204.6 | 18.7 |
| 4. Construction | 204233.3 | 235502.1 | 31268.8 | 15.3 |
| 4.1 Residential | 166801.4 | 194674.8 | 27873.4 | 16.7 |
| 4.2 Non Residential | 14503.0 | 16512.7 | 2009.7 | 13.9 |
| 4.3 Heavy Constructions (Highway, Bridges, etc.) | 22928.9 | 24314.6 | 1385.6 | 6.0 |
| 5. Metal Productions, Machinary, and Electrical Tools and fitting | 22783.0 | 28191.1 | 5408.1 | 23.7 |
| 5.1 Fabricated Metal Equipments | 5278.9 | 5768.4 | 489.5 | 9.3 |
| 5.2 Machine Tools | 45.1 | 154.3 | 109.2 | 242.1 |
| 5.3 Machinary - Agricultural | 1057.5 | 2766.1 | 1708.5 | 161.6 |
| 5.4 Machinary - Construction, Oil, and Mines | 1062.2 | 1106.5 | 44.2 | 4.2 |
| 5.5 Machinary - Office and Computing | 842.6 | 845.5 | 2.9 | 0.4 |
| 5.6 Machinary - Others | 1600.0 | 2881.5 | 1281.5 | 80.1 |
| 5.7 Electrical Equipments | 4091.1 | 3691.1 | -399.9 | -9.8 |
| 5.8 Home Equipments | 3317.0 | 3089.8 | -227.2 | -6.9 |
| 5.9 Communications Equipments | 2371.9 | 3564.3 | 1192.4 | 50.3 |
| 5.10 Electronic Parts | 2284.1 | 3340.2 | 1056.1 | 46.2 |
| 5.11 Medical Equipments | 729.5 | 879.5 | 150.0 | 20.6 |
| 5.12 Generators | 96.1 | 97.0 | 0.9 | 1.0 |
| 5.13 Turbines | 7.0 | 6.9 | -0.1 | -1.0 |
| 6. Transportation Equipment Production and Fitting | 33516.9 | 37271.8 | 3754.9 | 11.2 |
| 6.1 Vehicles and Vehicle Parts | 21861.5 | 24530.3 | 2668.8 | 12.2 |
| 6.2 Jet Boat/Water Transportation | 55.3 | 30.1 | -25.2 | -45.5 |
| 6.3 Aircraft and Aircraft Parts | 7146.0 | 8507.4 | 1361.4 | 19.1 |
| 6.4 Other Parts about Transportation | 4454.1 | 4204.0 | -250.1 | -5.6 |
| 7. Transportation, Communications and Public Services | 101578.6 | 116829.4 | 15250.8 | 15.0 |
| 7.1 Railways and Passengers Vehicles | 17309.6 | 16332.3 | -977.3 | -5.7 |
| 7.2 Truck Services and Store Arrangements | 14532.6 | 14644.2 | 111.6 | 0.8 |
| 7.3 Pipe Lines Except Natural Gas | 0.0 | 0.0 | 0.0 | |
| 7.4 Communications | 0.0 | 0.0 | 0.0 | |
| 7.5 Electricity | 50658.2 | 67142.1 | 16483.9 | 32.5 |
| 7.6 Gas and Gas Pipe Line Services | 4963.7 | 5572.6 | 608.9 | 12.3 |
| 7.7 Other Services | 14114.4 | 13138.2 | -976.2 | -6.9 |
| 8. Wholesaler and Retailers | 413797.0 | 490442.0 | 76645.1 | 18.5 |
| 8.1 Wholesale Business - Durable Commodities | 83900.9 | 100932.9 | 17031.9 | 20.3 |
| 8.2 Wholesale Business - Non Durable Commodities | 66976.6 | 75941.6 | 8965.0 | 13.4 |
| 8.3 Automative Dealer/ Franchise | 44994.8 | 49179.7 | 4184.9 | 9.3 |
| 8.4 Other Retail Business | 164686.5 | 201418.4 | 36731.9 | 22.3 |
| 8.5 Import Business | 51629.6 | 61525.0 | 9895.5 | 19.2 |
| 8.6 Export Business | 1608.5 | 1444.5 | -164.1 | -10.2 |
| 9. Finance, Insurance, and Fixed Assets | 152326.1 | 180236.6 | 27910.5 | 18.3 |
| 9.1 Commercial Banks | 1384.4 | 979.3 | -405.0 | -29.3 |
| 9.2 Finance Companies | 159.4 | 201.3 | 42.0 | 26.3 |
| 9.3 Development Banks | 627.4 | 1196.2 | 568.8 | 90.7 |
| 9.4 Microfinance Development Banks | 47464.5 | 59996.3 | 12531.8 | 26.4 |
| 9.5 Saving and Credit Cooperatives | 4074.4 | 4417.0 | 342.5 | 8.4 |
| 9.6 Pension Fund and Insurance Companies | 683.5 | 130.2 | -553.2 | -80.9 |
| 9.7 Other Financial Institutions | 5064.6 | 6355.2 | 1290.6 | 25.5 |
| 9.8 Local Government (VDC/Municipality/DDC) | 0.0 | 0.0 | 0.0 | |
| 9.9 Non Financial Government Institutions | 2678.2 | 2695.7 | 17.5 | 0.7 |
| 9.10 Private Non Financial Institutions | 911.2 | 1072.4 | 161.2 | 17.7 |
| 9.11 Real Estates | 77916.5 | 89250.3 | 11333.8 | 14.6 |
| 9.12 Other Investment Institutions | 11362.0 | 13942.7 | 2580.6 | 22.7 |
| 10. Service Industries | 141682.9 | 174080.0 | 32397.1 | 22.9 |
| 10.1 Tourism (Treaking, Mountaining, Resort, Rafting, Camping, etc.) | 12167.4 | 13484.2 | 1316.8 | 10.8 |
| 10.2 Hotel | 46468.6 | 58933.3 | 12464.7 | 26.8 |
| 10.3 Advertising Agency | 1405.9 | 1634.3 | 228.4 | 16.3 |
| 10.4 Automotive Services | 2493.3 | 2912.8 | 419.4 | 16.8 |
| 10.5 Hospitals, Clinic, etc./Health Service | 22579.8 | 25372.7 | 2792.9 | 12.4 |
| 10.6 Educational Services | 29126.3 | 32169.0 | 3042.7 | 10.5 |
| 10.7 Entertainment, Recreation, Films | 3361.7 | 3621.2 | 259.5 | 7.7 |
| 10.8 Other Service Companies | 24079.9 | 35952.6 | 11872.7 | 49.3 |
| 11. Consumable Loan | 73019.9 | 85192.1 | 12172.2 | 16.7 |
| 11.1 Gold and Silver | 32673.3 | 38850.0 | 6176.7 | 18.9 |
| 11.2 Fixed A/c Receipt | 10237.7 | 13909.1 | 3671.4 | 35.9 |
| 11.3 Guarantee Bond | 29352.9 | 31345.5 | 1992.6 | 6.8 |
| 11.4 Credit Card | 756.0 | 1087.5 | 331.5 | 43.9 |
| 12. Local Government | 1553.6 | 1566.6 | 13.0 | 0.8 |
| 13. Others | 330779.0 | 378828.9 | 48049.9 | 14.5 |
| Total (1 to 13) | 1895132.7 | 2208851.2 | 313718.4 | 16.6 |
