Highest share of Bagmati province in deposits, loans of BFIS

Kathmandu, Jan 2: Bagmati province has the highest share in the deposits and loans of banks and financial institutions (BFIs). 

The Economic Activities Study Annual Report of fiscal year 2024/25 published by the Nepal Rastra Bank (NRB) on Thursday, of the total deposits mobilized by BFIs till July 16, 2025, the share of Bagmati province was 65.8 per cent and 59.5 per cent in total loan disbursement. 

The banks and financial institutions had collected total Rs 7,295 billion deposits in the fiscal year 2024/25. Of it, Rs 4,797billion deposits was collected only from Bagmati Province. 

Similarly Rs 553 billion deposits was collected from Koshi Province, Rs  407 billion deposits from Madhes Province, Rs 612 billion deposits from Gandaki Province, Rs 91.9 billion deposits from Karnali Province and Rs 173 billion deposits from Sudurpaschim Province. 

Likewise, out of Rs 5586 billion loan disbursed till mid-July 2025, Rs 3,323 billion loan was invested only from Bagmati Province while Rs 613 billion loan was disbursed from Koshi Province, Rs 495 billion from Madhes Province, Rs 356 billion from Gandaki Province, Rs 577 billion from Lumbini Province, Rs 62.12 million from Karnali Province and Rs 157 billion from Sudurpaschim Province. 

As per the NRB, loan disbursed from BFIs in agro sector reached to Rs 336 billion reducing by 0.04 per cent till July 16, 2025 as compared to corresponding period of previous fiscal year. Of the total agro loan disbursed in last fiscal year, the highest amount of loan was disbursed on livestock and animal slaughtering heading which stands at Rs 61.19 billion and lowest amount of loan in tobacco heading which is Rs 206 million. 

Koshi Province has 16.7 per cent share in loan disbursed in agro sector, 18.7 per cent of Madhes Province, 36.2 per cent of Bagmati Province, 7.1 per cent of Gandaki Province, 15 per cent of Lumbini Province, 1.5 per cent of Karnali Province and 4.7 per cent of Sudurpaschim Province.by the end of last Ashar (July 16, 2025), loans amounting to Rs 1,699 billion 490 million had been disbursed in the industrial sector. Of the total loans, the share of loans disbursed in the industrial sector was 30.42 percent.

Towards the industrial loans, the highest loan disbursement has been in the non-food manufacturing sector at 35.27 percent, followed by the electricity, gas and water sector at 26.26 percent; the agriculture, forestry and beverage-related industries at 21.85 percent; the construction sector at 11.70 percent; the metal products, machinery and electronics industries at 4.23 percent, and the lowest in the mining sector at 0.69 percent.

The report states that as of the end of last Ashar, Bagmati Province had the highest amount of industrial loans disbursed, Rs 1280 billion 970 million, which accounts for 71.3 percent of the annual loans disbursed under this category.In like manner, the loan disbursement to the industrial sector is 10.5 percent in Koshi Province and 8.3 percent in Lumbini Province has eight point three percent, 7.5 percent in Madhes Province, 1.6 percent in Gandaki Province, 0.2 percent in Karnali Province, and 1.6 percent in Sudurpaschim Province.

Similarly, loan disbursement in the service sector reached Rs 2,184 billion 40 million by the end of the last fiscal year. During this period, only 39.1 percent of the total credit from banks and financial institutions was directed to the service sector.

Of the loans disbursed in the service sector, the wholesale and retail sub-sector received the highest with 47.3 percent, followed by 12.2 percent in the 'real estate' sub-sector, 11.8 percent in the tourism sub-sector, 11.3 percent in finance, insurance and immovable property sub-sector, 6.6 percent in education, 3.7 percent in transport, storage and communication, 3.7 percent in other service sub-sectors and 3.3 percent in health and other social-related sub-sectors.

The share of Bagmati Province in the loans disbursed under the service sector is 59.5 percent. Similarly, Lumbini has 10.3 percent, Koshi 10.1 percent, and Madhesh Province nine percent. Likewise, the report mentions that Gandaki has 6.9 percent, Karnali 1.1 percent, and Sudurpashchim Province three percent towards the loans disbursed under the service sector. (RSS)