EghtesadOnline: The Central Bank of Iran has released its latest report on loans allocated by lenders, which show that the services sector again attracted the highest share while a majority of loans were doled out for providing working capital.
The latest report published by the monetary regulator shows that banks and credit institutions allocated more than 5.19 quadrillion rials ($106.68 billion) in loans to various sectors during the first 11 months of the current fiscal year (started March 21, 2017). The amount was doled out in the form of more than 8.25 million loans.
Compared with the similar period of last year when more than 4.18 quadrillion rials ($85.92 billion) worth of loans were allocated, bank facilities in the current fiscal year registered an 8.8% increase.
The services sector grabbed the lion's share of the loans at more than 2.1 quadrillion rials ($43.17 billion) handed out in the form of 4.7 million loans, according to Financial Tribune.
The industrial and mining sector came second and absorbed more than 1.51 quadrillion rials ($31.04 billion) worth of facilities given in the form of 256,983 loans. The commercial sector ranked third with a total of 925,940 loans worth more than 724.6 trillion rials ($14.9 billion).
The housing and construction sector was next and received 919,309 loans worth more than 444.01 trillion rials ($9.13 billion). The agriculture and miscellaneous loans rounded up the list, as they received more than 1.44 million and 3,591 loans respectively worth more than 401.93 trillion rials ($8.27 billion) and 5.97 trillion rials ($122.72 million).
The numbers indicate that the average value of each loan allocated to the industrial and mining sector was more than 5.88 billion rials ($120,850), which is higher than those allocated to any other sector. In the services sector, the average value of each loan stood at 447 million rials ($9,190).
In the first 11 months of the current fiscal year, more than 3.21 quadrillion rials ($65.98 billion) or 62% of all loans were allocated for providing working capital.
According to CBI, the number shows a 5.9% year-on-year increase, as the volume of working capital loans in the same period of last year had equaled more than 1.78 quadrillion rials ($36.58 billion).
Credits handed out with the purpose of creating a business had the biggest share after working capital loans and exceeded 489.62 trillion rials ($10.07 billion) or 9.4%.
Loans given for the purchase of personal goods and renovation of homes each had single-digit shares, while loans with "other" purposes registered an 8.9% share equal to more than 462.31 trillion rials ($9.5 billion).
Working capital loans had the most accentuated penetration in the industrial and mining sector and constituted an 84.5% share of all loans allocated to that sector totaling more than 1.27 quadrillion rials ($26.1 billion).
After that, the penetration share of working capital loans was highest in the commercial and agriculture sectors where they grabbed the respective shares of 70.3% and 68.1% worth more than 509.25 trillion rials ($10.47 billion) and 273.54 trillion rials ($5.62 billion).