Share Margin Loans Increase by NPR 3.33 Billion in Magh

Kathmandu – Bank loans taken by investors to purchase shares increased by NPR 3.33 billion in the month of Magh alone. According to data from the Nepal Rastra Bank, the outstanding margin lending rose from NPR 152.82 billion at the end of Poush to NPR 156.15 billion by the end of Magh. Margin loans issued by commercial banks increased by NPR 3.39 billion, reaching NPR 133.07 billion, while development banks increased such lending by NPR 26 million to NPR 19.89 billion. However, finance companies saw a decline of NPR 87 million, bringing their margin loans down to NPR 3.18 billion. Overall, margin-based share loans have increased by NPR 15.45 billion during the first seven months of the current fiscal year. The rise in lending comes after the Nepal Rastra Bank removed the previous NPR 250 million cap on margin loans for individuals on October 22, which has contributed to the gradual increase in such loans.