The total amount of investment made by the commercial banks in auto loan jumped to 28.62 billion in mid-July 2009, growing at well over 16 percent from mid-January 2009. The banks´ loan in auto sector in mid-January was Rs 2.45 billion.
Nepal Rastra Bank (NRB) figures show that the top investors in auto loans are NABIL Bank Limited, Standard Chartered Bank Limited, Himalayan Bank Limited and Nepal Investment Bank Limited, among others.
As at mid-July 2009, NABIL Bank´s loan in the sector has soared to Rs 3.83 billion, while it was Rs 3.37 billion six months ago. The share of NABIL Bank in overall auto loans of the commercial banks stands at 13.38 percent.
Standard Chartered Bank Nepal Limited´s investment in auto sector has soared to Rs 2.97 billion over this period from Rs 2.87 billion from mid-January, 2009. Its share in the overall auto loans market stands at 10.4 percent.
Similarly, Himalayan Bank has also increased its loans in auto sector from Rs 2.33 billion to Rs 2.61 billion over the period, raising its share in the overall market to 9.14 percent.
Nepal Investment Bank, the fourth largest lender investor in the sector that enjoys 6.86 percent share, too has invested as much as Rs 1.96 billion as at mid-July 2009.
Head of Consumer lending at NABIL, Raveena Joshi attributes the bank´s leadership in the sector to its tailored service, which are designed to meet the needs of the consumers.
The increase in consumption capacity of the consumers and also the increase in disposable income of the individual have resulted in the sales of vehicles. In mid-July itself, there was an increase in disposable income by Rs 200 billion.
Top four Auto Loan Investors
| Banks | Total investment (million) | Interest Rate |
| NABIL Bank | Rs 3.83b | 11-13% |
| Standard Chartered | Rs 2.97b | 10.50% |
| Himalayan Bank | Rs 2.61b | 11-12.50% |
| Nepal Investment Bank | Rs 1.96b | 12% |
Related story
Desperate search for missing girls as nearly 80 dead in Texas f...
