Economy, Business And Markets

Lending Up 5%

Lending Up 5%Lending Up 5%

Lending by commercial banks grew by about 5% to 6.53 trillion rials ($283.4 billion at the official exchange rate) in the first half of the fiscal year (ending March 20) compared to the similar period last year.

Data from the CBI indicates that lending registered a growing trend over the first half of the year (ended September 22) and rose from 6.2 quadrillion rials ($208.9 billion) in March to 6.5 quadrillion rials ($283.4 billion) by the end of the period, ISNA reported citing CBI data.

Based on CBI figures, loans were granted in the framework of eleven Islamic contracts among which Muzarebeh, Salaf, sales in installment and rent-to-buy contracts dropped by 1.23%, 4.6%, 8.7% and 36% respectively.

Loans granted in the framework of Civil Participation accounted for the major part of lending and grew by 4.5% to 2.7 quadrillion rials ($91.4 billion) by September 22.

Lending under other contracts namely interest-free, Jualah, legal participation and direct investment rose by 6.3%, 1.5%, 3.2% and 24.2% respectively, the regulator said.