Banks lower interest rates yet again

Himal Press 12 Feb 2024
Banks lower interest rates yet again

KATHMANDU: Commercial banks continued the lower interest rates for the eighth straight month. Sixteen commercial banks have lowered their interest rates while four have kept the rates unchanged for the month of Falgun (mid-February to mid-March).

Laxmi Sunrise, Himalayan, Everest, and Machchhapuchchhre Bank have kept their interest rates on individual fixed deposits unchanged for the coming month.

The average interest rate offered by commercial banks on individual fixed deposits fell to 7.7% in the month of Falgun, from 8.11% a month ago.

Banks have lowered interest rates due to excess liquidity in the banking system. Banks are seeing their deposits pile up while they are not seeing demand for new loans.

The reduction in the policy rate by the central bank is also encouraging banks to reduce rates aggressively.

Out of 20 commercial banks in the country, Citizens Bank International is offering the highest interest rate of 8.25% on individuals’ fixed deposits in the month of Falgun. The bank is offering 9.15% in the month of Magh.

Likewise, Agricultural Development Bank Ltd is offering the lowest interest of 6.44% in the month of Falgun, down from 7.01% in Magh.

Machchhapuchchhre, Laxmi Sunrise, NIC Asia, Everest, Nepal Investment Mega, and Siddhartha are offering the same interest rate of 8%, while NMB is offering 8.5%, Himalayan is offering 8.15%, Nepal SBI is offering 8.1%, and Kumari is offering 8.01%.

Similarly, Prime, Prabhu, Sanima, and Rastriya Banijya are offering 7.4%, 7.5%, 7.51%, and 7.35%, respectively. Likewise, Nabil, Global IME, Standard Chartered, and Nepal Bank are offering 7.75%, 7.6%, 7.35%, and 7.25%, respectively.

Published On: 12 Feb 2024


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