Agricultural Credit by Commercial Banks. Source: Nepal Rastra Bank
Agricultural Loan by Commercial Banks. Source: Nepal Rastra Bank

Agricultural credit is important for the development of Nepal. This is because Nepalese economy depends heavily on agriculture.

Loan to agricultural by commercial banks decreased by 1.25% over previous month. However, growth in credit by 2.58%. This led to significant decrease in ratio of agricultural loan to total loan to 7.7% this month from previous month’s 8%. This ratio further worsens if we take out Agricultural Development Bank from the basket. Commercial banks are at the level way below statutory requirement since they need to maintain this ratio as 10% by mid July 2019.

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