In the first month of the current fiscal year, credit disbursed by banks and financial institutions to the private sector increased by NPR 14.11 billion, representing a 0.3% growth. This growth is a positive indicator, especially when compared to the same period last year, which saw a decline of NPR 4.35 billion (0.1%).

Annual Growth:

As of the end of Shrawan 2081, credit disbursed to the private sector by banks and financial institutions increased by 6.2%.

Sector-wise Credit Flow:

Non-financial Institutional Sector: 63.4% of the total credit was disbursed to this sector, slightly down from 64.0% last year.
Individual and Household Sector: 36.6% of the total credit was disbursed to this sector, up from 36.0% last year.

Performance of Financial Institutions:

Commercial Banks: Credit flow increased by 0.3%.
Finance Companies: Credit flow increased by 1.1%.
Development Banks: Credit flow decreased by 0.3%.

Collateral Security:

Current Assets (Agricultural and Non-Agricultural Goods): Collateral security accounted for 13.3% of the total credit, up from 12.1% last year.
Real Estate Collateral Security: Collateral security accounted for 66.3% of the total credit, down from 67.1% last year.

Sectoral Expansion of Credit Flow:

Sectors with Increased Credit Flow: Agriculture (0.5%), Industrial Production (0.1%), Transport, Communication, and Public Service (1.6%), Service Industry (0.6%), Consumer Sector (0.1%).
Sectors with Decreased Credit Flow: Construction (0.4%), Wholesale and Retail Trade (0.2%).

Increase/Decrease in Types of Loans:

Increased Loans: Term Loans (0.3%), Margin Loans (1.5%), Trust Receipt (Import) Loans (9.4%), Hire Purchase Loans (0.03%), Real Estate Loans (0.1%).
Decreased Loans: Overdraft Loans (3%), Cash Flow Loans (0.2%).

Overall, the first month of the current fiscal year has shown some improvement in credit disbursement by banks and financial institutions, contributing to some stability and positivity in the Nepalese economy. However, sectoral diversity in credit flow suggests that there is still room for improvement.