Central banks's outstanding amount of refinancing stands at Rs 108.49 billion

KATHMANDU, NOVEMBER 07 : The outstanding amount of refinancing provided by Nepal Rastra Bank (NRB) stood at Rs.108.49 billion in mid-September 2022. As of mid-September 2022, the outstanding concessional loan is Rs. 213.23 billion extended to 147,926 borrowers. Of which, Rs.139.67 billion has been extended to 60,302 borrowers for selected commercial agriculture and livestock businesses, the Central Bank stated in the Current Macroeconomic and Financial Situation Report released in October.

The Report is based on two months' data ending Mid-September, FY 2022/23. Likewise, Rs. 70.10 billion loan has been extended to 84,790 women entrepreneurs. A total of 2,834 borrowers have availed of Rs.3.46 billion in concessional loans in other sectors. A business continuity loan has been extended to the Covid-19 affected tourism, cottage, small and medium industries for payment of salaries to workers and employees in line with 'Business Continuity Loan Procedure, 2020'. The outstanding loan extended under this provision is Rs. 0.90 billion as of mid-September 2022.

Inter-bank Transaction

In the review period, BFIs interbank transactions amounted to Rs.647.59 billion including Rs.580.52 billion inter-bank transactions among commercial banks and Rs.67.06 billion among other financial institutions (excluding transactions among commercial banks). In the corresponding period of the previous year, such transactions were Rs.648.31 billion including Rs.557.30 billion among commercial banks and Rs.91 billion among other financial institutions (excluding transactions among commercial banks).

Interest Rates

The weighted average 91-day treasury bills rate remained at 9.09 percent in the second month of 2022/23, which was 3.98 percent in the corresponding month a year ago. The weighted average inter-bank transaction rate among commercial banks, which was 4.75 percent a year ago, increased to 8.50 percent in the review month. The average inter-bank rate of BFIs which is considered an operating target of monetary policy stood at 8.50 percent in the review month. Such a rate was 4.68 percent a year ago.

The average base rate of commercial banks increased to 10.01 percent in the second month of 2022/23 from 6.89 percent a year ago. The weighted average deposit rate and lending rate of commercial banks stood at 7.81 percent and 12.06 percent respectively in the review month. Such rates were 4.92 percent and 8.57 percent respectively a year ago.

Merger and Acquisition

After the introduction of the merger and acquisition policy aimed at strengthening financial stability, the number of BFIs involved in this process reached 247 as of mid-September 2022. Out of which, the licenses of 179 BFIs were revoked thereby forming 68 BFIs.

Financial Access

​​​​​​​ Of the total 753 local levels, commercial banks extended their branches at 752 levels as of mid-September 2022. The number of local levels having commercial bank branches was 750 a year ago. The total number of BFIs licensed by NRB remained at 125 in mid-September 2022 (Table 5). As of mid-September 2022, 26 commercial banks, 17 development banks, 17 finance companies, 64 microfinance financial institutions, and 1 infrastructure development bank are in operation. The number of BFIs branches reached 11,585 in mid-September 2022 from 11,528 in mid-July 2022.

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