Commercial banks in Nepal have once again reduced their interest rates for the month of Bhadra. According to the published list of 20 commercial banks, the average deposit rates are lower compared to the previous month of Shrawan.
The maximum average interest rate on individual fixed deposits fell by 0.11 percentage points, from 5.68% in Shrawan to 5.57% in Bhadra.
Out of 20 banks, 8 banks reduced their fixed deposit rates, including Krishi Bikas Bank, Everest Bank, Laxmi Sunrise Bank, Standard Chartered, Siddhartha Bank, Kumari Bank, Sanima Bank, and Nepal SBI Bank.
Meanwhile, 11 banks kept their rates unchanged. These include Citizens Bank, NMB Bank, Nepal Investment Mega Bank, Himalayan Bank, Prime Commercial Bank, Global IME Bank, Rastriya Banijya Bank, Nabil Bank, NIC Asia Bank, Machhapuchhre Bank, and Nepal Bank. On the other hand, Prabhu Bank increased its rate.
Banks generally offer lower rates for short-term deposits and slightly higher rates for long-term deposits. Since these fixed deposit rates affect both savings and loan rates, the decline means borrowers may benefit from lower loan costs as well.
The trend of lowering rates started earlier when Nepal Rastra Bank reduced the policy rate to 4.5%, which pushed banks to cut deposit and lending rates. The Standing Liquidity Facility Rate is currently at 6%, while the Standing Deposit Facility Rate stands at 2.75%.
The latest cut in Bhadra is also linked to higher government capital expenditure in Asar, which boosted deposits but left credit demand weak. As a result, banks lowered rates to manage liquidity.
Commercial Banks’ Interest Rates for Bhadra 2082
| Bank | Shrawan (%) | Bhadra (%) |
|---|---|---|
| Agricultural Development Bank | 5.40 | 5.20 |
| Everest Bank | 6.25 | 5.75 |
| Nepal Bank | 5.40 | 5.40 |
| Laxmi Sunrise Bank | 5.50 | 5.00 |
| Machhapuchhre Bank | 6.00 | 6.00 |
| NIC Asia Bank | 6.25 | 6.25 |
| Prabhu Bank | 4.25 | 5.35 |
| Standard Chartered | 6.26 | 5.13 |
| Rastriya Banijya Bank | 5.50 | 5.50 |
| Nabil Bank | 5.50 | 5.50 |
| Global IME Bank | 6.00 | 6.00 |
| Siddhartha Bank | 5.75 | 5.50 |
| Prime Commercial Bank | 6.00 | 6.00 |
| Kumari Bank | 5.41 | 5.21 |
| Sanima Bank | 6.18 | 5.75 |
| Himalayan Bank | 6.00 | 6.00 |
| Nepal SBI Bank | 5.35 | 5.25 |
| Nepal Investment Mega | 5.25 | 5.25 |
| NMB Bank | 6.00 | 6.00 |
| Citizens Bank | 5.50 | 5.50 |
