Kathmandu. Though Nepal Rastra Bank (NRB) has tightened its grip on share pledge loans of margin nature, some commercial banks have increased their loan investments. According to Nepal Rastra Bank, five commercial banks have increased their share pledge loans till April / May of the current fiscal year. Nabil Bank has increased the most.

Nabil Bank has increased its share pledge loan by Rs. 79 crore. Along with Nabil, Sunrise, Bank of Kathmandu, Machhapuchhre and Nepal SBI Bank have increased their share pledge loans as compared to July last year. Nepal SBI Bank, on the other hand, did not issue share pledge loan in July last year. As of April this year, Nepal SBI Bank has disbursed a share-based loan of Rs 36 million.

Commercial banks have reduced their share pledge loans by Rs. 15.75 billion as of mid-July last year. As of July last year, commercial banks had invested a total of Rs 90.92 billion in loans.

So far, Global IME Bank has made the largest share pledge loan investment. The bank has invested Rs 6.81 billion in share pledge loans. However, Global IME Bank has been reducing lending. Last July, the bank had invested a total of Rs 7.14 billion in share pledge loans.

Similarly, Nabil is seen as the second bank to invest in share pledge loans. Nabil Bank has invested Rs 6.79 billion in loans up to April this year.

Rastriya Banijya Bank has also reduced its share pledge loan as compared to last July. The bank has reduced its share pledge loan by Rs 1.19 billion. Nepal Bank, Siddhartha Bank and Citizens Bank are also among the banks investing more share pledge loans. Compared to July last year, Sunrise Bank has increased its share pledge loan by Rs 171 million, Bank of Kathmandu by Rs 441 million, Machhapuchhre by Rs 671 million and Agriculture Development Bank by Rs 858 million.