Laxmi Capital News
Rs 637.19 billion credit extended to industrial sector last fiscal

Banks and financial institutions (BFIs) extendedcredit worth Rs 637.19 billion to the industrial sector in the last fiscalyear, 2016-17. The credit flow of BFIs to the industrial sector surged by 21per cent in the review period against the corresponding period of earlier year.

BFIs had disbursed loansworth Rs 526.68 billion to the industrial sector in fiscal 2015-16 — anincrease of 22.1 per cent compared to fiscal year 2014-15 when credit amountingto Rs 431.26 billion had been floated to the sector.

A major portion ofinvestment of the BFIs was centred on agro-based industries and production offood items last fiscal. BFIs invested Rs 286.74 billion in the aforementionedareas, 13.8 per cent higher than the previous fiscal year.

According to theeconomic activities study of Nepal Rastra Bank (NRB) — the central monetary andregulatory authority — BFIs invested Rs 3.61 billion in industries related tomines and minerals in the last fiscal, which was 18.36 per cent higher than thefigures of previous year. Similarly, BFIs invested Rs 198.9 billion inconstruction, against Rs 161.58 billion of previous fiscal year and Rs 123.3billion in the fiscal 2014-15.

Likewise, Rs 57.82billion was invested in electricity-, gas- and water-related projects. Theinvestment amount in these areas stood at Rs 42.47 billion in fiscal year2015-16 and Rs 30.65 billion in fiscal 2014-15. As per the NRB’s report, creditin those areas rose by 36.1 per cent last fiscal year.

In the same way,investment of banks in metal and electronic products soared by 34.2 per cent toRs 26.69 billion in the review period. The figure stood at Rs 19.88 billion inthe fiscal 2015-16 and Rs 16 billion in the fiscal 2014-15.

The central bank alsoreported that Rs 63.37 billion in credit was extended to tourism and servicebased industries. Growth of credit stood at 32.5 per cent in these sectors inthe review period. The BFIs had provided loans worth Rs 47.81 billion to thesector in the fiscal 2015-16 and Rs 38.80 billion in the fiscal 2014-15.

As per the study reportof the central bank, the highest credit growth could be seen in electricity,gas and water — 36.1 per cent in the last fiscal year. Likewise, credit growthin metal and electronics products stood at 34.2 per cent and tourism andservice industries recorded credit growth of 32.5 per cent in the reviewperiod.

The central bank hadconducted the study in Kathmandu, Biratnagar, Janakpur, Birgunj,Siddharthanagar, Nepalgunj and Dhangadi areas. According to NRB, it hasanalysed the data provided by the municipalities, sub-metropolitan cities andmetropolitan cities of 57 districts across the country.

Comparative figures

Sector

2014-15

2015-16

2016-17

Mines and minerals

Rs 2.24bn

Rs 3.05bn

Rs 3.61bn

Agro-based industries

Rs 222.26bn

Rs 251.88bn

Rs 286.74bn

Construction

Rs 123.3bn

Rs 161.58bn

Rs 198.9bn

Electricity

Rs 30.65bn

Rs 42.47bn

Rs 57.82bn

Metal products

Rs 16bn

Rs 19.88bn

Rs 26.69bn

Tourism and service

Rs 36.8bn

Rs 47.81bn

Rs 63.37bn

 

Source:The Himalayan Times, 19th December 2017

 

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