Most banks reduce deposit interest rates for Shrawan

KATHMANDU: Commercial banks have lowered their interest rates on deposits for the month of Shrawan (mid-July to mid-August) – the first month of the fiscal year 2025/26.

Out of the 20 commercial banks in the country, 14 have reduced their interest rates on individual fixed deposits, while four have kept them unchanged and two have raised their deposit rates slightly.

With this revision, Standard Chartered Bank Nepal Ltd has the highest interest on deposits, while Prabhu Bank has the lowest.

Nine commercial banks are offering individual fixed deposit rates of 6 percent or higher, ten banks are offering rates ranging between 5% and 5.9%, while only Prabhu Bank is offering a deposit interest rate below 5%.

Prabhu Bank has lowered its interest rates on individual fixed deposits by 1.85 percentage points to 4.25% for Shrawan.

Bankers say the downward revision in deposit rates is largely due to the Nepal Rastra Bank’s decision to reduce bank rate from 6.5% to 6%, the policy rate from 5% to 4.5% and the deposit collection rate from 3% to 2.75% through the monetary policy for 2025/26.