NEPSE trading

#NepalBanking #SectoralLending
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By Sandeep Chaudhary

Sectoral Lending Mandates Compliance Check Asadh 2082

Sectoral Lending Mandates Compliance Check Asadh 2082

Nepal Rastra Bank (NRB) requires commercial banks to channel a portion of their lending into priority sectors—11% in agriculture, 6.5% in energy, and 11% in MCSME (Micro, Cottage, Small & Medium Enterprises). The latest data reveals a diverse pattern of compliance among state-owned and private banks.

In agriculture lending, Agriculture Development Bank (28.55%) is far ahead of the minimum, reflecting its mandate as a development-focused bank. Nepal Bank (12.26%) and RBB (12.01%) also meet the target, while private players like NMB (12.04%), Prime (11.80%), Citizens (11.77%), Kumari (11.46%), and Sanima (11.92%) show strong commitment. However, big names such as Standard Chartered (0.29%), Everest (0.09%), and Himalayan (1.10%)fall drastically short, raising questions about their alignment with NRB’s inclusivity goals.

In energy financing, banks like Sanima (13.14%), NMB (13.05%), Kumari (11.38%), and Citizens (12.24%) are the clear leaders, positioning themselves as strong supporters of hydropower and renewable energy. Even state banks like RBB (8.77%) and Nepal Bank (7.12%) comply. In contrast, NIC Asia (2.61%), despite being a large private lender, falls significantly below the mandate, showing a stronger tilt toward retail and corporate loans rather than long-term infrastructure.

For MCSME lending, ADBL (24.64%), Nepal Bank (17.59%), and NIC Asia (16.74%) stand out as champions of small-scale businesses and grassroots entrepreneurs. Other banks like Kumari (13.15%) and Machhapuchhre (11.14%)also meet the minimum. However, foreign and conservative banks again underperform: Standard Chartered (4.55%), Himalayan (4.51%), and Nepal SBI (6.91%) fail to comply, highlighting their low appetite for riskier SME lending.

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