Nepal, June 11 -- Banks and Financial Institutions' (BFIs) private sector lending increased by only 5.7 percent in the first 10 months of the current fiscal year, less than half of the 12 percent target set by Nepal Rastra Bank (NRB).

The central bank had announced in its monetary policy that credit flow to the private sector should expand by 12 percent in FY 2025/26. With just two months remaining in the fiscal year, BFIs would need to raise lending significantly beyond the pace achieved so far if the target is to be met.

According to NRB records, BFIs issued loans worth Rs 312 billion during the review period, bringing total private sector lending to Rs 5.809 trillion. In the same period last year, such credit had grown by 7.3 percen...