Six banks post double-digit credit growth in 11 months

KATHMANDU: Credit growth of commercial banks remained subdued in the first 11 months of the current fiscal year, with lending increasing by just 5.81%, well below the 12% target set by Nepal Rastra Bank in the Monetary Policy for 2025/26.

The total outstanding loans of commercial banks increased to Rs 5,263.34 billion in mid-June 2026 from Rs 4,974.55 billion in mid-June last year. The 20 commercial banks disbursed Rs 288.79 billion worth of new loans during the period.

Despite sluggish overall credit demand amid slower economic activity, six commercial banks posted double-digit lending growth during the review period.

Machhapuchchhre Bank recorded the highest credit growth of 17.16% in the first 11 months, followed by Everest Bank (13.69%), Laxmi Sunrise Bank (10.65%), Rastriya Banijya Bank Ltd (10.42%), Nabil Bank (10.27%) and Nepal Bank (10.05%).

On the other hand, credit growth at seven commercial banks remained below the average growth rate of 5.81%, with three of them posting negative growth. Standard Chartered Bank recorded the largest decline, with its lending portfolio shrinking by 19.79%. The bank’s total loans fell from Rs 88.46 billion in mid-June last year to Rs 70.95 billion in mid-June this year.

Similarly, NIC Asia Bank and Prabhu Bank saw their credit portfolios contract by 11.66% and 2.14%, respectively.

Lending growth at Kumari Bank Ltd (2.99%), Himalayan Bank (2.30%), Citizens Bank (1.16%) and Nepal Investment Mega Bank Ltd (1.12%) remained below the industry average.

Nabil Bank, the largest bank by loan portfolio, increased its credit by 10.27% during the period. Rastriya Banijya Bank and Nepal Bank also posted double-digit growth of 10.42% and 10.05%, respectively.

Meanwhile, several banks recorded moderate credit growth. Global IME Bank expanded lending by 7.68%, followed by Agriculture Development Bank at 7.34%, Nepal SBI Bank at 6.54%, and Prime Commercial Bank at 5.97%.

In terms of the increase in lending amount, Nabil Bank led with Rs 44.52 billion in new disbursements over the 11 months. Global IME Bank followed with Rs 33.83 billion, while Rastriya Banijya Bank, Laxmi Sunrise Bank and Siddhartha Bank recorded new lending of Rs 32.18 billion, Rs 30.90 billion and Rs 30.63 billion, respectively.