Nepal service sector got the major chunk of investment from nearby banks in FY 2018-19.
As the recent reports show, Nepali banks’ giving to the domestic services industry went up 18 percent over the first eight months of the fiscal.
This increase has instilled some positive sentiment among investors trying to find investment in the tertiary sector in the economy.
Based on Nepal Rastra Bank ( NRB ) reports, the overall lending to services sector was found to be NPR 232 .51 billion during the first eight months period, to show a rise from NPR 35 billion.
Banking and finance companies’ overall outstanding loans to service industry firms during the fiscal was NPR 195 billion, demonstrating a 14 percent year-on-year rise.
The hotel industry was an additional major recipient as a sub-sector under the service sector!
Overall lending to hotels has reportedly improved by 21 .9 percent or NPR 14 .81 billion during the review period, and the total outstanding loans to hotel sub-sector was totaled at NPR 82.4 billion.
The financing to tourism industry was totaled NPR 2 .6 billion and the total outstanding banking investment stands at NPR 275 million.
The entertainment industry also got some 52 percent hike in lending at NPR 7 .96 billion, while it was NPR 41 .66 billion for the education sector and NPR 30 billion for the health sector.
Whilst majority sub-sectors have obtained hike in their lending year-on-year, promoting sub-sector witnessed a fall of 4 .1 percent by receiving just NPR 1 .65 billion.
Imagine the new discussions on Budget FY 2019-20 and alternation in policies will add some positives to the other sectors too, giving a due boost to the Nepali economy.