To­tal loans in­crease by 15bn

In terms of per­cent­age growth by sec­tor, loans to trans­port sec­tor reg­is­tered the high­est growth with 89.99% in­crease fol­lowed by loans to trade and com­merce with 72.16% as of June 2016

Business Bhutan - - Money - Dechen Dolkar from Thim­phu

The fi­nan­cial sec­tor’s to­tal loan to the econ­omy in­creased by Nu 15bn from June last year to June 2016.

As per the fi­nan­cial sec­tor per­for­mance re­view re­port of Royal Mon­e­tary Au­thor­ity (RMA) June 2016, fi­nan­cial in­sti­tu­tions gave a to­tal loan of Nu 71.51bn as of June 2015. The fig­ures in­creased to Nu 86.60bn as of June 2016, in­di­cat­ing a 21% growth.

The in­crease in the amount of loan dis­bursed was at­trib­uted to strong de­mand to­wards the trade and com­merce and hous­ing sec­tor. In sub­stan­tial terms, the trade and com­merce sec­tor took the high­est of Nu 19.37bn fol­lowed by the hous­ing sec­tor with Nu 19.24bn. The ser­vice and tourism sec­tor fol­lowed suit with Nu 11.32bn in to­tal loans.

How­ever, in terms of per­cent­age growth by sec­tor, loans to trans­port sec­tor reg­is­tered the high­est sec­toral growth with 89.99% in­crease fol­lowed by loans to trade and com­merce with 72.16% as of June 2016.

Ac­cord­ing to the RMA re­port, of the to­tal loan, banks pro­vided Nu 86.60bn loans while non­banks gave the re­main­ing Nu 15.17bn.

The to­tal loans and ad­vances pro­vided by the banks in­creased from Nu 61.37bn to Nu71.44bn in­di­cat­ing a growth of 16.40%. Sim­i­larly, the to­tal loans and ad­vances of non-banks in­creased from Nu 10.14bn in June 2015 to Nu.15.17bn dur­ing the pe­riod un­der re­view.

The Non Per­form­ing Loans (NPL) of the fi­nan­cial sec­tor in­creased from Nu 6.77bn in June 2015 to Nu 7.88bn in June 2016, in­di­cat­ing an in­crease of 16.41%. In terms of fig­ures, the NPL of the banks in­creased to Nu 7bn from Nu 5.97bn as against the in­crease in the to­tal loans from Nu 61.37bn to Nu 71.44 bn dur­ing the pe­riod un­der re­view.

Trade and com­merce had the high­est NPL fol­lowed by ser­vice and tourism and man­u­fac­tur­ing sec­tors. The to­tal de­posit base of the banks in­creased from Nu 71bn in June 2015 to Nu 82.47bn in June 2016. The in­crease in de­posit was mainly at­trib­uted to the in­crease in time de­posit and de­mand de­posit.

The to­tal as­set of the fi­nan­cial sec­tor in­creased from Nu 107.47bn in June 2015 to Nu 124.36bn in June 2016. The in­crease in as­set was mainly at­trib­uted to the in­crease in loans and ad­vances and in­vest­ments in cor­po­rate bond and equity.

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