Nepal’s banking sector recorded a total credit expansion of Rs. 359 billion during the first ten months of the current fiscal year, reflecting continued lending growth across most sectors of the economy.

According to data published by Nepal Rastra Bank (NRB), total credit disbursement across 13 economic sectors reached Rs. 58.88 trillion by the end of Baisakh of the current fiscal year. During the same period last fiscal year, total credit stood at Rs. 55.26 trillion, while total outstanding credit was recorded at Rs. 55.92 trillion at the end of Ashad.

Construction Sector Records Highest Credit Growth

Among the 13 sectors classified by NRB, the construction sector recorded the highest credit expansion over the last ten months, growing by 12.8 percent.

Credit investment in construction stood at Rs. 233 billion during Baisakh of the previous fiscal year and had declined slightly to Rs. 231 billion by the end of Ashad. However, in the current fiscal year, lending to the sector increased by Rs. 29.62 billion, reaching Rs. 261 billion.

Heavy construction activities were the major contributor to this growth.

Within the construction category, investment in the heavy construction sub-sector surged by 19.7 percent over the year, increasing from Rs. 128 billion to Rs. 153 billion.

Consumer Lending Continues Strong Expansion

Consumer lending also witnessed strong growth, rising by 12.3 percent during the review period.

Within consumer loans, lending under the gold and silver category recorded the fastest expansion, jumping by 41.7 percent.

Credit under this segment increased from Rs. 77.67 billion last year to more than Rs. 100 billion.

Total consumer lending has now exceeded Rs. 1.293 trillion, compared to Rs. 1.151 trillion recorded at the end of the previous fiscal year, marking an annual increase of Rs. 141 billion.

Agriculture Sector Sees Decline Despite Overall Lending Growth

While lending expanded across most sectors, agriculture was the only major sector to record a decline.

Agricultural credit fell by 2.3 percent during the period.

Investment in agriculture stood at Rs. 426 billion during Baisakh of the previous fiscal year, declined to Rs. 417 billion by the end of Ashad, and has now further decreased to Rs. 408 billion.

Among the five agricultural sub-categories, agricultural services recorded the largest decline.

Credit in agricultural services dropped by 5.6 percent, falling from Rs. 177 billion to Rs. 169 billion.

Mining and Manufacturing Show Positive Momentum

Credit investment in the mining sector increased by 10 percent during the current fiscal year.

Similarly, manufacturing sector lending grew by 6.8 percent.

Investment in metal products, machinery, and electronics tools also expanded by 5.4 percent, increasing from Rs. 73 billion to over Rs. 77 billion.

Total investment in the manufacturing group rose from Rs. 884 billion last year to Rs. 944 billion this year.

Wholesale and Retail Trade Shows Slowest Growth

Among the sectors receiving large volumes of credit, wholesale and retail trade recorded the slowest growth.

Investment in this sector increased by only 0.3 percent.

Outstanding lending in wholesale and retail trade stood at Rs. 1.036 trillion compared to Rs. 1.033 trillion at the end of the previous fiscal year, although it remained below the Rs. 1.048 trillion recorded during last year’s Baisakh period.

The latest NRB data suggests that while overall credit expansion remains positive, growth is increasingly concentrated in construction and consumer sectors, while agriculture continues to face financing challenges.