KATHMANDU, March 12 -- Nepal Rastra Bank (NRB) is likely to miss its target of increasing private sector lending as the loans issued by the banks and financial institutions (BFIs) in the first seven months stood less than half of the annual target, mainly due to the BFIs' sluggish lending rate amid ongoing economic slowdown.

The Current Macroeconomic and Financial Situation Report of Nepal for the first seven months of the FY 2024/25 unveiled by the NRB shows that the BFIs issued loans worth Rs 283.46 billion, a growth of 5.6 percent. In the same period last year, the private sector lending increased by 4.1 percent to Rs 197.21 billion.

Out of the total lending, 63.8 percent was issued to non-financial institutions while remaining 36.2...