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Credit disbursement to the private sector grew at a significantly slower pace in the first quarter of the current fiscal year, reflecting subdued economic activity and weakened investor confidence. According to the Nepal Rastra Bank (NRB), banks and financial institutions (BFIs) increased lending to the private sector by just 1.5 percent to Rs 82.93bn in the first three months of 2025/26. During the same period of the previous fiscal year, private-sector lending had increased by 2.5 percent, with BFIs extending Rs 128.65bn in loans. 

As of mid-October, the total outstanding credit has reached Rs 5,580.64bn. In the review period, outstanding loans of BFIs to the construction sector increased 2.9 percent, transportation, communication and public sector by 2.4 percent, industrial production sector by 2.4 percent, consumable sector by 1.6 percent, and wholesale and retail sector by 1.4 percent. Outstanding loans to the service industry sector, however, decreased by 0.3 percent.

The slowdown in credit expansion has been attributed to the overall economic slump and the adverse investment climate following the GenZ protests of Sept 8 and 9, which created uncertainty and discouraged new business expansion. Even though interest rates have come down, demand for credit has not picked up because economic sentiment remains weak,” a banker says.

Average interest rates on loans have fallen notably compared to last year. In mid-October, average lending rates stood at 7.5 percent for commercial banks, 8.77 percent for development banks, and  10.18 percent for finance companies, down from 9.33 percent, 10.63 percent, and 11.86 percent, respectively, last year. However, lower interest rates have not spurred demand for credit from the private sector.

Commercial banks and finance companies expanded lending by only 1.6 percent each, while development banks posted an even smaller growth of 0.5 percent in the review quarter. In contrast, deposits in BFIs grew by a healthy three percent in the review period. The total outstanding deposits in the banking system have reached Rs 7,482.59bn. 

The mismatch between rising deposits and sluggish credit growth has raised concerns about pressure on banks’ profitability. With limited lending avenues, interest income of banks—the primary source of earnings for most institutions—has been falling over the past few months.

Experts say credit uptake is not growing despite ample liquidity and lower borrowing costs due to weak investor sentiment. If the government does not act now, they say, credit demand—and therefore economic recovery—may remain subdued in the coming months.

The Winter Session of the Lumbini Province Assembly is beginning today. 

The first meeting of the seventh session of the Lumbini Province Assembly is scheduled to convene at 1 pm today.

In today's meeting of the assembly, Speaker Tul Bahadur Gharti is scheduled to read out three letters received from the Office of the Province Chief, Secretary of Province Assembly Durlav Kumar Punmagar said.  

The letters are regarding the seventh session of the province assembly; reshuffle of the council of ministers, and the authentication of different bills approved from the sixth session of the province assembly. 

In today's meeting, the province assembly members are scheduled to put their views on behalf of their respective political parties. 

For this session of the province assembly, some bills including the one made to amend the Facilities of District Assembly and District Coordination Committee Act, 2075 BS have been registered in the province assembly secretariat. 

Likewise, the council of ministers has approved some more bills to table in the province assembly in this session. 

The price of gold has dropped by Rs 1, 900 per tola in the domestic market on Monday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 242, 700 per tola today.  It was traded at Rs 244, 600 per tola on Sunday.

Similarly, the silver is being traded at Rs 3, 115 per tola.

Christian Pulisic's goal gave AC Milan a 1-0 win over city rivals Inter Milan at the San Siro on Sunday with Mike Maignan saving Hakan Calhanoglu's penalty to deny the hosts an equalizer, Reuters reported.

Inter's three-match winning run had brought them to the top of the standings, but there is little room for error in this season's Scudetto battle, where AS Roma hold pole position after a 3-1 win at Cremonese and Milan are now on their shoulders.

Milan moved up to second spot on 25 points, two behind Roma, and level with defending champions Napoli while Inter, who could have returned to the summit with a win, slipped to fourth place on 24 points alongside Bologna, according to Reuters.

Real Madrid rescued a 2-2 draw at Elche on Sunday after coming from behind twice in a pulsating second half, Reuters reported.

The result extended Real's winless run to three matches in all competitions, but they reclaimed top spot in LaLiga on 32 points, one ahead of Barcelona.

After a lackluster first half, it was Elche who struck first in the 53rd minute from an impressive team move.

German Varela's exquisite backheel assist found Aleix Febas inside the box, and the midfielder took one touch before delicately slotting the ball past goalkeeper Thibaut Courtois via the post, according to Reuters.

Tadeo Allende scored a second-half brace, Lionel Messi scored and picked up three assists and Inter Miami pulled away to a 4-0 victory over FC Cincinnati in Sunday’s Eastern Conference semifinal, Reuters reported.

Mateo Silvetti, 19, also had a goal and an assist for No. 3 seed Miami, which continues its deepest MLS Cup Playoff run in club history by advancing to its first East final. It will host No. 5 seed New York City FC, which shut out top-seeded Philadelphia Union 1-0 on Sunday night.

Cincinnati was eliminated in a home match for a third consecutive postseason while falling a match short of reaching its second East final, according to Reuters.

Italy - Italy captured a remarkable third consecutive Davis Cup title on Nov 23 with Matteo Berrettini and Flavio Cobolli winning their singles matches for a 2-0 triumph over Spain in the best-of-three tie in Bologna, Reuters reported.

Inspired by loud support from the home crowd, Berrettini dispatched Pablo Carreno Busta 6-3 6-4 in the opening match before Cobolli overcame Jaume Munar 1-6 7-6(5) 7-5 to seal the triumph for Filippo Volandri's team.

The victory over six-times winners Spain marked Italy's fourth Davis Cup crown overall, following wins in 1976, 2023 and 2024, according to Reuters.

Minister for Communications and Information Technology Jagadish Kharel has expressed confidence that all political parties will participate in the House of Representatives (HoR) elections scheduled for March 5.

Addressing a program at Kalinag Secondary School in Kalinchowk-8 in Dolakha district on Sunday, Minister Kharel said that a favourable environment for polls has been created, adding that this message should be spread across the country.

"The major responsibility of this government is to hold elections. The government is ready for holding polls and all political parties are taking part," Kharel added.

Likewise, Minister Kharel stated that the government was working to maintain good governance in the country. 

This government has accorded priority to the tasks of good governance by curbing corruption, according to Kharel.