Most commercial banks in the country have reduced their deposit interest rates by an average of 0.19 percent. The average interest rate of fixed deposits, which was 6.73 percent in the Nepali month of Shrawan (mid-July and mid-August), has decreased by 0.19 percent to 6.54 percent for the Nepali month of Bhadra (mid-August to mid-September).
As economic activities and demands for loans have not increased, banks have been reducing interest rates on deposits since last year. Banks have reduced interest rates as the demand for loans has not increased.
According to the published interest rates effective from August 1, 11 out of 20 banks have reduced their deposit interest rates.
Prime Commercial Bank has increased the deposit interest rate, while eight other banks have kept the interest rates unchanged.
Machhapuchhre, Kumari, Laxmi Sunrise, Standard Chartered, Nabil, Global IME, Citizen and Nepal Bank have not changed their deposit interest rates.
Similarly, Himalayan, Siddharth, Nepal Investment Mega, Everest, Rastriya Banijya, NIC Asia, NMB, Sanima, Prabhu, Agricultural development bank and Nepal SBI Bank have reduced their deposit interest rates for Bhadra.
NIC Asia and Nepal Bank are providing the highest interest rate for fixed deposits in Bhadra. NIC Asia Bank has set a maximum interest rate of 7.41 percent for fixed deposits while Nepal Bank has set a 5.25 percent interest rate.
