Banks have individually determined their interest rates following the cancellation of an interest rate cartelization scheme by the Nepal Bankers’ Association. The decision, made in the interest of fairness and transparency, has resulted in varied interest rates across banks effective from July 17th.
While a significant number of banks have chosen to reduce their interest rates, others have maintained theirs or even increased them in a bid to attract deposits for future business opportunities, scrapping cartelization.
Nabil Bank, one of the largest banks in the country, stands out by raising its interest rates. Previously, all banks had a uniform fixed deposit interest rate of 9.99 percent. However, regulatory provisions allowed for adjustments of up to 10 percent. In line with this provision, Nabil Bank has increased its maximum interest rate to 10.49 percent for specific terms.
Additionally, Nabil Bank has introduced varying interest rates based on the deposit term. During the term, the bank will pay a minimum of 9.49 percent interest. For savings accounts, Nabil Bank will provide an interest rate ranging from 5.90 to 7.90 percent.
Joining Nabil Bank in raising interest rates are Prime Commercial Bank, NMB Bank, and Kumari Bank. Prime Commercial Bank now offers interest rates of 5.93 to 7.93 percent on savings accounts and has announced interest rates of up to 10.93 percent for specific terms. NMB Bank has implemented fixed interest rates for different periods, ranging from a minimum of 9 percent to a maximum of 10.98 percent. Savings accounts with NMB Bank will earn interest rates from 5.98 to 7.98 percent.
While some banks have adjusted their interest rates upwards, others have opted to lower them. National Commercial Bank, Prabhu Bank, Nepal SBI Bank, Machhapuchhre Bank, Everest Bank, Standard Chartered Bank, Siddhartha Bank, Sanima Bank, Nepal Bank, and Agricultural Development Bank have all reduced their interest rates.
The extent of the reduction varies among these banks. Rastriya Banijya Bank, for instance, has set its term interest rate at 8.99 percent. Prabhu Bank will provide a maximum of 8.99 percent interest during the term, while Nepal SBI Bank has dropped its rate to 9.1 percent. Other banks, including Machhapuchhre Bank, Everest Bank, Standard Chartered Bank, Siddhartha Bank, Sanima Bank, Nepal Bank, and Agricultural Development Bank, have also implemented reductions in their interest rates.
Himalayan Bank, Global IME Bank, Laxmi Bank, Sunrise Bank, and Citizens Bank have chosen to maintain their existing interest rates, signaling stability in the banking sector amidst these changes.
