Banks loan portfolio in Bashkortostan grew by 12.5% and exceeded 769 billion rubles

UFA, 7 March 2019. /Bashinform News Agency, Galina Bakhshieva/ translated by Tatiana Aksyutina/.

At last year end, the aggregate loan portfolio of banks in Bashkiria grew by 12.5% and reached 769.4 billion rubles. In Russia as a whole, this indicator grew by 13.9%. The main growth drivers in loans in the region’s economy were mortgage and consumer loans to individuals, the press service of the National Bank for Bashkiria reported.

Over the year, the companies’ indebtedness increased in the republic by 1.4% and reached 364.9 billion rubles.

The quality of the corporate loan portfolio of the banking sector in the region last year was higher than the national average. Thus, the share of overdue debt on loans to legal entities and individual entrepreneurs by the beginning of 2019 was at the level of 5.9% against 6.5% in Russia.

In general, over the year the volume of loans extended to legal entities and individual entrepreneurs amounted to 483.4 billion rubles. This is 20.3% lower than in 2017.

As explained by the National Bank RB, this tendency is largely due to a decrease in the turnover of organizations for a number of activities, the continuing reduction in investment in fixed assets, and the prolongation of previously attracted loans.