Nepal, May 13 -- Private sector lending by banks and financial institutions (BFIs) grew by only 5.7 percent in the first nine months of the current fiscal year (FY), far below the annual target of 12 percent set by Nepal Rastra Bank (NRB).

With just two months remaining until the end of FY 2025/26, BFIs' lending to the private sector stands at less than half of the target ratio set by the central bank. According to bankers, weak confidence among private sector players amid the economic slowdown has weighed heavily on lending.

As per the NRB's Current Macroeconomic and Financial Situation Report of Nepal, BFIs extended an additional Rs 311.95 billion between mid-July 2025 and mid-April 2026. With this growth, private sector lending reac...