This fiscal year, commercial banks in Nepal have been giving out more loans using shares as collateral. By the end of the third quarter, 19 out of 20 commercial banks had provided over NPR 101 billion in share-backed loans, according to the latest data from Nepal Rastra Bank.
Massive Year-on-Year Growth
Compared to the same period last year, share loan disbursement has increased by 50.47%. Last year, banks had issued NPR 67.52 billion in share-backed loans. This significant rise shows the growing interest of both banks and investors in using shares as collateral.
Most Banks Growth in Share Loans Distribution
Out of the 20 commercial banks, 17 have increased their share loan distribution this year. However, 2 banks saw a decline in their lending, and Standard Chartered Bank did not issue any share loans at all during this period.
Top Performers in Share Loan Issuance
1. Nabil Bank
Nabil Bank leads the chart with the highest share loan issuance. By the end of Chaitra, it disbursed NPR 14.50 billion, which is a 24.92% increase from last year’s NPR 11.61 billion.
2. Global IME Bank
In second place is Global IME Bank, which issued NPR 11.65 billion in share loans — a 68.24% jump compared to last year’s NPR 6.92 billion.
3. Kumari Bank
Kumari Bank comes third, with a massive growth of 127.52%. It issued NPR 9.13 billion this year, up from NPR 4.01 billion last year.
Banks with Reduced Share Loans
Two banks reduced their share loan distribution:
NIC Asia Bank saw a drop of 41.72%.
Himalayan Bank experienced a slight decline of 0.74%.
Loan Disbursement by All Banks
Here’s a quick summary of the commercial banks and their performance by Chaitra this fiscal year:
Conclusion
The strong rise in share loan distribution indicates growing investor confidence and bank interest in capital market activities. With most banks expanding their loan books in this segment, the share mortgage loan sector in Nepal is experiencing rapid growth.
