Nepal service sector received the major chunk of investment from local banks in FY 2018-19.<\/p>\n
As the latest reports show, Nepali banks\u2019 lending to the domestic services sector went up 18 percent over the first eight months of the fiscal.<\/p>\n
This rise has instilled some positive sentiment among investors looking for investment in tertiary sector in the economy.<\/p>\n
According to Nepal Rastra Bank (NRB) reports, the total lending to services sector was found to be NPR 232.51 billion during the first eight months period, showing a rise from NPR 35 billion.<\/p>\n
Banking and finance companies\u2019 total outstanding loans to service sector firms during the fiscal was NPR 195 billion, showing a 14 percent year-on-year rise.<\/p>\n
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Growth in investment to the service sector was majorly attributed to the tourism industry that showed 10.8 percent growth in FY 2018-19.<\/p>\n
\u201cYou can see a lot of hotels are being constructed, while tourism sector<\/a> is also buoyant as tourist arrivals are increasing at a record high pace. This will definitely increase the demand for loans from these businesses,\u201d says a bank official<\/span>.<\/p><\/blockquote>\n
Hotel industry was another major recipient as a sub-sector under service sector!<\/p>\n
Total lending to hotels has reportedly increased 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.<\/p>\n
The lending to tourism industry was totaled NPR 2.6 billion and the total outstanding banking investment stands at NPR 275 million.<\/p>\n
Entertainment sector also received some 52 percent hike in lending at NPR 7.96 billion, while it was NPR 41.66 billion for education sector and NPR 30 billion for health sector<\/a>.<\/p>\n
While majority sub-sectors have received hike in their lending year-on-year, advertising sub-sector witnessed a fall of 4.1 percent by receiving just NPR 1.65 billion.<\/p>\n
Hope the new discussions on Budget FY 2019-20 and change in policies will add some positives to the other sectors too, giving a due boost to the Nepali economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
Nepal service sector received the major chunk of investment from local banks in FY 2018-19. As…<\/span><\/p>\n