Most banks lower interest rate on deposits

KATHMANDU: Most of the Class ‘A’ banks have reduced interest rates for the month of Ashadh (mid-June to mid-July), thanks to slow credit growth.

The average interest rate on individual fixed deposits has come down to 6.86%, down from 6.99% in Jestha (mid-May to mid-June). Likewise, the average rate on institutional fixed deposits has decreased to 5.65% from 5.79% in the previous month.

According to the Nepal Bankers Association, 11 out of 20 commercial banks have reduced interest rates, while three have increased rates and six have kept the rates unchanged.

Himalayan Bank Ltd has raised its interest rate by the highest 0.75 percentage point to 8.25%. Similarly, Machhapuchchhre Bank Ltd and Nabil Bank Ltd have raised their rates by 0.25 percentage points each to 7.5% and 7%, respectively.

Agricultural Development Bank Ltd, Nepal Bank Ltd, NIMB Bank Ltd, Prabhu Bank Ltd, Siddhartha Bank Ltd, and Standard Chartered have kept their interest rates unchanged.

Global Bank Ltd has reduced its interest rate by the highest one percentage point to 6.5%.