Following a brief slowdown in July—where total loans contracted slightly by Rs 1.71 billion—credit demand accelerated sharply in August. Commercial banks disbursed a massive Rs 62.68 billion in August alone, pushing total industry credit investment to Rs 5.35 trillion by mid-September.
Global IME, Everest, and Laxmi Sunrise Lead Disabling Growth
Among the 20 commercial banks, Global IME Bank led the market by disbursing the highest volume of loans, adding Rs 20.01 billion in the two-month review period. This aggressive expansion propelled Global IME to the top spot in total loan portfolio size at Rs 496.85 billion, closely followed by Nabil Bank at Rs 495.04 billion.
Other major players rounding out the top industry positions include Rastriya Banijya Bank with a total loan portfolio of Rs 349.71 billion.
Contractions Seen in Seven Banks
Despite the broader market expansion, credit flow contracted for seven commercial banks during the same period. NIC Asia Bank recorded the steepest decline, with its loan portfolio shrinking by Rs 6.69 billion down to Rs 204.44 billion.
Other institutions experiencing a reduction in loan investments included Sanima Bank (down Rs 3.46 billion), Prabhu Bank (down Rs 2.79 billion), and Prime Commercial Bank (down Rs 1.41 billion). Marginal declines were also reported by Nepal Investment Mega Bank, Himalayan Bank, and Standard Chartered Bank.
Driving Factors Behind Credit Growth
Bankers attribute the surge in loan demand to a combination of seasonal and macroeconomic drivers. With major festivals approaching, market demand has been bolstered by increased imports of new vehicles and consumer goods, alongside heightened overall business activity.
Furthermore, high liquidity within the banking system has driven down base rates and interest rates across the board. Industry leaders remain optimistic that cheaper borrowing costs and sustained commercial activity will continue to fuel credit expansion in the upcoming months.
