Bank Lending to Economic Sectors Up 14 Percent

EghtesadOnline: Iranian banks and credit institutions allocated 257.2 trillion rials ($6.13 billion) in credits during the first month of the current fiscal year to April 20, which were handed out in the form of 204,935 loans.

News ID: ۷۸۲۶۹۵

26 May 2018

According to the Central Bank of Iran’s latest report published on its official website, the amount of loans extended during the month was 33.3 trillion rials ($792.85 million) or 14.9% higher compared with the same period of last year.

As is the norm, the services sector received the biggest portion of loans at more than 115.30 trillion rials ($2.74 billion) during the period. The sector received 112,044 loans.

Once more, the industrial and mining sector was second and received 7,264 loans amounting to more than 73.80 trillion rials ($1.75 billion). It was followed by the trade sector that saw 29,969 loans worth more than 39.45 trillion rials ($939.28 million) delivered to applicants, and the housing and construction sector that obtained 20 trillion rials ($476.19 million) in facilities handed out in the form of 33,167 loans, Financial Tribune reported.

The agriculture sector received 22,424 loans totaling more than 8.15 trillion rials ($194.04 million). According to the central bank, 67 miscellaneous loans worth 497 billion rials ($11.83 million) were also allocated during the month under review.

Loans allocated as working capital constituted the highest share in the overall lending portfolio of Iranian banks and credit institutions at 68.3% or 175.7 trillion rials ($4.18 billion). This amount was higher by 17.3 trillion rials ($411.91 million) or 10.9% when compared with the first month of the previous fiscal year.

Facilities handed out in the form of working capital were most accentuated in the industrial and mining sector that received more than 63.41 trillion rials ($1.51 billion) or 85.9% of its total of more than 73.80 trillion rials loans for the purpose of working capital. The share was also noteworthy in the trade sector where working capital loans had an 82.6% share amounting to more than 32.59 trillion rials ($775.95 million).

In terms of average amount of loans, the industrial and mining sector again topped all other sectors in light of the fact that through its 7,264 loans, its per-loan average stood at 10.2 billion rials ($243,000). The services sector registered a per-loan average of about 1 billion rials ($23,810) which was the lowest among all other sectors.