This marks a Rs 25.81 billion increase from the Rs 140.70 billion recorded in the previous fiscal year.
The expansion of margin loans significantly outpaced overall credit growth in the financial system. While total banking sector lending grew by 6.48 percent in FY 2082/83, margin lending expanded at nearly three times that rate.
Over a two-year horizon, margin lending has expanded by Rs 76.42 billion, climbing from Rs 90.09 billion in mid-July 2081. However, the annual growth rate slowed compared to FY 2081/82, when margin loans surged by 56.17 percent.
Large-ticket borrowers continue to dominate the sector:
-
Loans above Rs 10 million (Rs 1 crore): Expanded by 20.75 percent to reach Rs 119.45 billion, up from Rs 98.93 billion the previous year. This segment accounts for nearly 72 percent of total margin lending.
-
Loans between Rs 5 million and Rs 10 million: Increased by 19.49 percent to Rs 19.15 billion.
-
Loans between Rs 2.5 million and Rs 5 million: Grew by 7.34 percent to Rs 18.85 billion.
-
Loans under Rs 2.5 million: Rose by 10.59 percent to Rs 9.04 billion.
Combined, categories above Rs 5 million represent Rs 138.61 billion, or roughly 83 percent of all stock mortgage loans, highlighting a heavy concentration among high-value borrowers rather than retail investors.
While the appetite for equity-backed borrowing remains strong across the banking sector, financial experts caution that heightened leverage increases investor risk and heightens mortgage exposure for banks during market downturns.
