Kathmandu. Loans from banks and financial institutions to the private sector increased by 14.1 percent. Such loans increased by 8.9 percent in the corresponding period of the previous year, according to the seven-month data released by the National Bank.

On a year-on-year basis, credit to private sector from banks and financial institutions increased by 17.3 percent in mid-January. Of the credit to private sector, credit to commercial banks increased by 14.0 percent, credit to development banks by 17.7 percent and credit to finance companies by 4.4 percent during the review period.

In mid-January, 66.4 percent of the total loans disbursed by banks and financial institutions were secured by real estate and 12.3 percent by current assets (agricultural and non-agricultural goods). In mid-January 2012, the ratio of such collateral loans was 65.1 percent and 13.4 percent respectively.

Out of the total investment of banks and financial institutions in the seven months of Fiscal Year, credit to agriculture sector increased by 25.5 percent, credit to industrial manufacturing sector increased by 10.1 percent, credit to construction sector increased by 7.6 percent, credit to transport, communication and public services sector increased by 7 percent. Loans to wholesale and retail trade increased by 11.2 percent and services to services industry increased by 13.1 percent.

Of the loans extended by banks and financial institutions during the period under review, term loans increased by 13.2 percent, overdraft loans by 14.8 percent, demand and working capital loans by 16.8 percent, real estate loans (including individual housing loans) by 5.3 percent and margin nature loans. Trust receipts (import) loans increased by 53.5 percent and higher purchase loans decreased by 5.9 percent.