Banks Credit Rises in October

Bank interest rates in Nepal
Banking Khabar/ In October, the credit flow of commercial banks in Nepal saw a significant increase. According to the Nepal Rastra Bank, credit disbursements grew by NPR 56.3 billion during the month. In September, credit flow had risen by approximately NPR 53 billion, and with the additional NPR 56.3 billion in October, total lending by commercial banks reached NPR 4.68196 trillion by the end of the month, up from NPR 4.62566 trillion at the end of September.
This makes October’s credit flow the highest in the past nine months. The previous peak occurred in December 2023 (Poush), when credit flow surged by NPR 78 billion. In January, it increased by NPR 3 billion, followed by a decrease of NPR 1 billion in February. In March, credit disbursements rose by NPR 37 billion, but in April, they declined by NPR 15 billion. Subsequently, credit flow increased by NPR 20 billion in May, NPR 29 billion in June, and NPR 2 billion in July.
Then, in September, credit flow spiked by NPR 53 billion. Breaking down the data for October, NPR 14.26 billion in loans were disbursed between October 1 and 11, NPR 17.23 billion between October 12 and 18, NPR 2.81 billion between October 19 and 25, and NPR 22.75 billion between October 26 and 30. In the same month of the previous fiscal year, credit flow had increased by NPR 81 billion. During the review month, bank deposits also saw a substantial rise, increasing by NPR 133.55 billion. By the end of September, commercial banks held NPR 5.78857 trillion in deposits, which grew to NPR 5.92212 trillion by the end of October.

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