Province1: 60 percent of BFIs credit Financing in Service Industry

Kathmandu: A large chunk of the total credit flow of banks and financial institutions(BFIs) in Province 1 has been invested in the service sector.

According to the report of the provincial economic situation made public by Nepal Rastra Bank, of the total loans disbursed by the BFIs of Province 1 in Fiscal Year 2077/78, the share of loans disbursed in the service sector was the highest at 59.7 percent.

According to NRB, refinancing of BFIs increased by Rs. 9.51 billion to Rs. 10.37 billion in FY 2077/78. Such loan was Rs. 860 million in FY 2076/77.

Debt to deposit ratio exceeds 138 percent:
Compared to Asar end of 2077, the credit extended by BFIs in this province increased by 26.4 percent to Rs. 480 billion in Asar end of 2078. The NRB report states that the credit-to-deposit ratio has reached 138.7 percent.

Deposits mobilized by banks and financial institutions increased by 24.4 percent to Rs. 346.50 billion in Asar end 2078 as compared to Asar end 2077.

Tourism sector most affected:
The biggest impact of the Corona epidemic has been on the tourism business. The number of tourist arrivals has declined by 59.7 percent in a year. The number of tourists arrival from third countries has declined the most by 92.4 percent.

Real estate registration increased:
Compared to FY 2076/77, in FY 2077/78, the number of real estate registrations in this state has increased by 36.4 percent. Similarly, the number of house / building map passes has increased by 3.6 percent.

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