Bank lending surges by Rs. 40 billion since blockade ends

Kathmandu February 25- Lending by commercial banks has surged after the trade blockade by India was lifted, swelling by Rs40 billion in the last one and a half months. India withdrew the embargo in the first week of February.

According to the Nepal Bankers’ Association, total loans extended by commercial banks amounted to Rs50 billion during the period from the beginning until January 1. Lending by commercial banks reached Rs1.19 trillion.

Bankers said that demand for loans from borrowers had soared after the embargo started to ease. Demand for loans has been increasing from most industrial sectors, ranging from small industries to big corporate sectors in the last two months.After India lifted the embargo, trading activities have grown in market centres. As traders could sell their goods in the market and generate cash flow, they started borrowing capital to expand their business, according to bankers. Source: TKP