Deprived sector lending down 2.3pc

KATHMANDU: The deprived sector loan disbursement has come down by 2.3 percent, thanks to plummeting credit demand across every sector.

Banks and Financial institutions (BFIs) have floated Rs 197 billion deprived sector loan in the first two months of 2020-21 against Rs 201 billion disbursed during the same period in the last fiscal year.

Bankers said that plummeting demand of loan across all sector due to the pandemic and the lockdown has led to comparatively low credit flow in the deprived sector. “Credit demand across every sector stood low throughout the lockdown. However, demand for loan is gradually increasing in recent weeks after the lockdown has been eased which will certainly boost the deprived sector lending,” informed a banker seeking anonymity.

As per the direction of Nepal Rastra Bank (NRB), banks are required to disburse at least five percent of their loan portfolio in the deprived sector.