Himal Press 
KATHMANDU: Commercial banks have decided to reduce interest rates for the month of Magh (mid-Jan to mid-Feb) by 1.13 percentage points.
A meeting of the Nepal Bankers’ Association (NBA) took a decision to this end.
The decision means the interest rate will come down to 11% from 12.13% for personal fixed deposits, and 9.13% to 9% for institutional fixed deposits.
Banks are offering an interest rate of as much as 15.33% on remittance fixed deposits. The interest rate on remittance fixed deposits will now come down to 12%.
Likewise, banks have decided to lower the interest rate on a normal savings account to 6%. The interest rate on normal savings accounts currently stands at 7.133%.
NBA has said that it decided to lower interest rates as the liquidity situation in the banking system is gradually improving.
The decision of commercial banks to lower interest rates will also compel development banks and other finance companies to lower rates.
Meanwhile, NBA has elected a new executive committee with Sunil KC, the CEO of NMB Bank, as president. Similarly, Santosh Koirala, the CEO of Machhapuchchhre Bank, has been elected as the Vice President. Likewise, Ajay Bikram Shah of Laxmi Bank, Deepak Kumar De of Nepal SBI Bank, Krishna Bahadur Adhikari of Nepal Bank, Roshan Kumar Neupane of NIC Asia, Sudesh Khaling of Everest Bank, and Suman Sharma of Sunrise Bank have been elected as the executive committee members.
