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Covid Relief & Economic Recovery
|
|
Credit Growth Control
|
|
Promotion of Merger & Acquisition
|
|
Growth rate
|
6%
|
|
Developed economies growth
|
5.6%
|
|
China & India Economic growth
|
8.1% & 9.5%
|
|
Worldwide trade growth
|
9.7%
|
|
Petroleum price increment
|
56.6%
|
|
Public Expenditure to GDP
|
97.3%
|
|
Economic Growth
|
|
|
Economic growth rate
|
4.01%
|
|
Gross Domestic Savings to GDP
|
6.6%
|
|
Gross National Savings to GDP
|
31.4%
|
|
Gross Fixed Capital Formation to GDP
|
27.3%
|
|
Inflation
|
3.6%
|
|
Government Expenditure
|
Rs. 1180.95B
|
|
Current
|
Rs. 851.68B
|
|
Capital
|
Rs. 228.30B
|
|
Financial Management
|
Rs. 100.97B
|
|
Revenue Collection by Govt.
|
Rs. 938.32 B
|
|
Foreign Trade, Remittance & BOP status
|
|
|
Export increment
|
44.4%
|
|
Import increment
|
28.7%
|
|
Trade deficit increment
|
27.3%
|
|
remittance increment
|
9.8% (total remittance Rs. 961.05 B)
|
|
Financial Sector
|
|
|
Deposit mobilization
|
Rs. 4662.73 B(21.4% increment)
|
|
Credit
|
Rs. 4084.81 B(27.3% increment)
|
|
Paid Up Capital
|
Rs. 390.43 B(10.8% increment)
|
|
CAR
|
(A: 14.1%, B: 13.2% & C: 22.0%)
|
|
NPL
|
(A: 1.5%, B: 1.5% & C: 6.2%)
|
|
Indicator
|
Estimation/Projection
|
|
Worldwide Inflation (Developed Economies)
|
2.1%
|
|
Worldwide Inflation (Emerging & Developing Economies)
|
4.7%
|
|
Worldwide Economic Growth
|
6.0% (2021) & 4.9% (2022)
|
|
Agro Sector Production Growth
|
Satisfactory due to fav. climate, fertilizers & increase in agri credit access
|
|
Economic Growth
|
Improve (Due to Vaccine availability)
|
|
Inflation
|
Impact (due to increase in crude oil prices, & currency fluctuation
|
|
Balance of Payment
|
Impact (due to increased imports & reduced no. of Nepalese going for foreign employment)
|
|
Foreign Exchange Reserves
|
Satisfactory
|
|
Liquidity
|
Impact (due to increase in credit demand after economic revival)
|
|
Indicators
|
Target
|
Status
|
|
Broad Money Supply
|
18%
|
21.8%
|
|
Private Lending Growth
|
20%
|
26.3%
|
|
Interbank Rate
|
1%-5% corridor
|
4.14%
|
|
Liquidity Injection
|
NRs. 438.28 billion (Repo 67.94 billion & SLF 370.34 billion)
|
|
|
Liquidity Absorption
|
NRs. 303.29 bil.(Reverse Repo 109.54 billion, Deposit coll. Bid 193.75 billion)
|
|
|
91 days Avg. T-Bill rate
|
4.55%
|
|
|
Inflation within
|
6.5%
|
|
Foreign exchange reserves to sustain import of goods and services for
|
7 months
|
|
Broad money supply growth
|
18%
|
|
private sector lending growth
|
19%
|
|
CRR
|
3%
|
|
Bank Rate
|
5%
|
|
SLF Rate
|
5%
|
|
Deposit Collection Rate of IRC
|
2% (increase from 1%)
|
|
Repo Rate
|
3.5% (previously 3%)
|
|
SLR
|
10%, 8% and 7% for A,B & C class
|
|
Source Mobilization
|
|
“B” & “C” class and Wholesale Lending “D” class to issue debentures of 25% ofpaid up capital (like commercial banks)
|
|
Agri and Energy Bonds provisions to continue
|
|
Additional 1% interest on deposit from remittance through banking system from Nepalese in foreign employment
|
|
Credit Disbursement
|
|
MSME Loans <Rs. 1 crore (15% of total portfolio) to continue
|
|
Focal desk for agriculture, MSME loans in commercial banks undergoing govt. trans. in local levels
|
|
Deprived sector loans to be gradually diverted towards MSME sectors
|
|
Deprived Sector Loan (DSL)
|
|
Business loans upto Rs. 15 lakhs to employees loosing job in tourism to be taken in DSL
|
|
Auto Loan upto Rs. 25 lakhs for self employment to be taken in DSL
|
|
Loan to women entrepreneurs for Micro Industries and self employment in project collateral upto Rs. 20 lakhs counted in DSL (compulsory insurance)
|
|
Loan upto Rs. 20 lakhs to actual farmer in project collateral to be counted in DSL (compulsory insurance)
|
|
Credit Repayment Period Addition, Restructuring & Rescheduling
|
|
Current provision of 2 years continuous loss to be classified into watchlist category to be increased to 3 years
|
|
Facility to BFIs to self reduce instalment amount & increase repayment period for loans having adverse impact on financial position & cash flow position due to Covid 19
|
|
EMI/EQI upto Asar 2078 during lockdown period may be extended to 2078 Poush
|
|
No fine/penal charge on interest accrual on loans disbursed to hotel, travel, trekking and airlines upto Asar 2079.
|
|
Principal and interest repayment upto Poush 2078 period to be increased by 1 year for loans highly impacted by Covid-19 & to MSME whose cash flow is blocked.
|
|
Restructuring and Rescheduling on highly impacted loans due to Covid 19 till Poush 2078
|
|
Additional Rs. 2 lakhs loan for repair & maintenance of public transportation
|
|
Other Provisions relating to credit
|
|
Credit to Deposit Ratio to be maintained within 90% till Ashadh 2079 (Current 85% provision of CCD to be removed)
|
|
Consortium limit of Rs. 1 billion to be increased to Rs. 2 billion
|
|
Special refinance to BroadBand Internet in rural areas
|
|
Compliance to Specified Sectoral Loan by “A” class may be done in lumpsum till 2079 Ashadh.
|
|
Interest capitalization of ongoing projects in moratorium period pre approved by NRB to be continued till 2079 Ashadh
|
|
Provision on interest capitalization on long term agricultural loans
|
|
Loan to vaccine manufacturing company at base rate of BFIs.
|
|
Policy reforms for loan facilitation in case of business change by MSMEs
|
|
LTV ratio on margin lending loan same (70%)
|
|
Maximum margin lending loan from 1 BFI to be Rs. 4 cr. & from all BFIs to be Rs. 12 cr.
|
|
Professionals impacted by covid 19 to be provided loans upto specific limit.
|
|
Refinance facility for charging station establishment
|
|
Easy loan disbursal to establish up to 100 bed hospitals in local levels not having hospitals
|
|
Provision of credit to institutions providing technical & business training.
|
|
Facilitation for financial resources to establish industries based on domestic raw materials
|
|
Additional Facilities for Merger till 2080 Ashadh end
|
|
1 year addition to comply specified sector loan.
|
|
0.5% relaxation in CRR & 1% relaxation in SLR till 1 year of joint operation
|
|
Per institutional deposit limit to be increased by 5%
|
|
Relaxation in 6 months cooling period to Directors & top management
|
|
1% relaxation in interest spread rate
|
|
• No approval of NRB required to merge branches within 1 km.
|
|
• No approval of NRB required to merge branches within 1 km.
|
|
• All above facilities for BFIs acquiring problematic BFIs
|
|
• Provision for candidacy in director either from promoter group or ordinary group option to be given to shareholders.
|
|
• Provision to open corporate office at a suitable place within workscope as well as to open correspondence office in province capital and Kathmandu to promote merger & acquisition for province level BFIs
|
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