Nepal, Oct. 14 -- Banks and financial institutions (BFIs) have been found aggressively issuing loans against shares as collateral, with the figure reaching Rs 167.85 billion as of mid-September this year.

As per the records with Nepal Rastra Bank (NRB), the issuance of loans in this category has more than doubled in the past three years. The cumulative amount of disbursed margin nature loan as of mid-September in Fiscal Year 2023/24 was Rs 91.32 billion.

Despite the significant volatility in the country's stock market, the disbursement of share-backed loans has continued to rise. Loans under this category disbursed three years ago was only Rs 76.53 billion.

According to the NRB, 20 commercial banks alone disbursed loans of Rs 144.46 b...