Recent data from Nepal Rastra Bank shows that while interest rates have fallen, lending to the private sector has grown modestly by just 4.4%. Total credit reached Rs 5.74 trillion, while deposits increased by 6.6% to Rs 7.74 trillion. The average lending rate for commercial banks dropped to 6.90% from 8.40% a year ago. Despite ample liquidity, private sector confidence remains subdued due to global price pressures and past economic instability. While consumption and construction sectors saw growth, agricultural lending declined.
