Florishing economic activities outside the Kathmandu Valley in the recent years have spurred the growth of lending from banks and financial institutions (BFIs) to the enterprise outside the valley, a study reveals.
The Economic Activities Study carried out on half-yearly basis for the past three years by Nepal Rastra Bank (NRB) also shows the Kathmandu valley and surrounding districts still dominate in receiving loans from BFIs. The study was carried out in 47 districts covering eight major commercial cities, including Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and Dhangadhi.
In the last fiscal year 2012-13, share of bank loans going to economic activities outside the Kathmandu valley surged to 42 percent, up from 38.5 percent in the previous fiscal, says the report. In fiscal year 2010-11, the share of loans that went outside the valley stood at 35 percent only.
Anil Gyawali, chief executive officer of Nabil Bank, said that the rise in the number of enterprises and entrepreneurs outside the Kathmandu valley helped push the lending outside the valley. “Big cement and hydropower industries are also opening outside the valley,” he said. “Corporate houses may have got approval of loans from Kathmandu even for the enterprises outside the valley which may have contributed to continue the dominance presence of loans for Kathmandu based economic activities.”
Among eight major cities and surrounding areas, the Kathmandu valley witnessed the lowest growth rate of lending in fiscal year 2011-12 and 2012-13 although size of loans was the highest. According to the report, the growth rate in fiscal year 2011-12 stood at 8.47 percent and 16.28 percent respectively.
In both the years, the lending growth rate in Nepalgunj and surrounding areas topped the chart with 33.26 percent and 46.98 percent respectively.
Other cities following Nepalgunj in terms of highest growth rate in lending are Janakpur (45.80 percent), Dhangadhi (42.95percent), Pokhara (38.88 percent), Biratnagar (36.35 percent), Birgunj (27.28 percent), Pokhara (19.89 percent) in the last fiscal year.
However, Biratnagar is just behind Kathmandu in terms of the size of loans received, followed by Pokhara and Siddharthanagar in both fiscal 2011-12 and 2012-13.
As far as the deposit is concerned, Kathmandu continues to rule the roost with 68.94 percent of the total deposit coming from the valley and sorrounding districts in the BFIs. Deposit collection in the valley and surrounding region stood at 65.16 percent in fiscal year 2011-12. Kathmandu’s dominance in deposit collection was followed by Pokhara with 8.53 percent, Biratnagar (5.58 percent), Birgunj (5.28 percent) and Siddharthanagar (5.24 percent) in the last fiscal year.
source: the himalayan times,26 jan 2014
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The Economic Activities Study carried out on half-yearly basis for the past three years by Nepal Rastra Bank (NRB) also shows the Kathmandu valley and surrounding districts still dominate in receiving loans from BFIs. The study was carried out in 47 districts covering eight major commercial cities, including Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Siddharthanagar, Nepalgunj and Dhangadhi.
In the last fiscal year 2012-13, share of bank loans going to economic activities outside the Kathmandu valley surged to 42 percent, up from 38.5 percent in the previous fiscal, says the report. In fiscal year 2010-11, the share of loans that went outside the valley stood at 35 percent only.
Anil Gyawali, chief executive officer of Nabil Bank, said that the rise in the number of enterprises and entrepreneurs outside the Kathmandu valley helped push the lending outside the valley. “Big cement and hydropower industries are also opening outside the valley,” he said. “Corporate houses may have got approval of loans from Kathmandu even for the enterprises outside the valley which may have contributed to continue the dominance presence of loans for Kathmandu based economic activities.”
Among eight major cities and surrounding areas, the Kathmandu valley witnessed the lowest growth rate of lending in fiscal year 2011-12 and 2012-13 although size of loans was the highest. According to the report, the growth rate in fiscal year 2011-12 stood at 8.47 percent and 16.28 percent respectively.
In both the years, the lending growth rate in Nepalgunj and surrounding areas topped the chart with 33.26 percent and 46.98 percent respectively.
Other cities following Nepalgunj in terms of highest growth rate in lending are Janakpur (45.80 percent), Dhangadhi (42.95percent), Pokhara (38.88 percent), Biratnagar (36.35 percent), Birgunj (27.28 percent), Pokhara (19.89 percent) in the last fiscal year.
However, Biratnagar is just behind Kathmandu in terms of the size of loans received, followed by Pokhara and Siddharthanagar in both fiscal 2011-12 and 2012-13.
As far as the deposit is concerned, Kathmandu continues to rule the roost with 68.94 percent of the total deposit coming from the valley and sorrounding districts in the BFIs. Deposit collection in the valley and surrounding region stood at 65.16 percent in fiscal year 2011-12. Kathmandu’s dominance in deposit collection was followed by Pokhara with 8.53 percent, Biratnagar (5.58 percent), Birgunj (5.28 percent) and Siddharthanagar (5.24 percent) in the last fiscal year.
source: the himalayan times,26 jan 2014
LINK
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