Gold price increases by Rs 500 per tola on Monday
The price of gold has increased by Rs 500 per tola in the domestic market on Monday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 243, 300 per tola today.
Similarly, the silver is being traded at Rs 3, 155 per tola today.
Deposit rates fall further
The average deposit rate offered by commercial banks has fallen further in November/December, reflecting subdued credit demand and a slowdown in economic activities. A study of interest rates for the new month published by 20 commercial banks show that the average maximum interest rate on individual fixed deposits has declined compared to October/November.
The average maximum interest rate on personal fixed deposits dropped by 0.160 percentage points to 5.0405 percent for November/December.
Lower deposit rates typically pull down lending rates, creating conditions that should encourage businesses and individuals to borrow more. In theory, cheaper credit stimulates investment, boosts consumption, and supports overall economic activity. However, despite the steady decline in interest rates in recent months, credit growth has remained weaker than expected.
Among the 20 commercial banks, 10 have reduced their maximum rates on personal fixed deposits for Mangsir, while the remaining 10 have kept their rates unchanged.
Banks that reduced their fixed-deposit rates include NIC Asia, Prime Commercial, Standard Chartered, Nabil, Siddhartha, Kumari, Sanima, Himalayan, Nepal SBI and Citizens Bank. Agricultural Development Bank, Everest, Nepal Bank, Laxmi Sunrise, Machhapuchchhre, Prabhu, Rastriya Banijya, Global IME, Nepal Investment Mega and NMB Bank, however, have kept their rates unchanged.
Most banks offer lower rates for short-term fixed deposits and higher rates for deposits with longer terms. Global IME Bank has offered the highest interest rate of six percent for individual fixed-term deposits of three years or longer. On the other hand, Standard Chartered is offering the lowest interest rate of 4.7 percent.
Bankers say the downward adjustment reflects the system’s excess liquidity and the inability to expand lending in a sluggish economy. Slow project spending, weak private-sector demand, and cautious borrowing behavior have limited credit growth this fiscal year, reducing banks’ need to compete aggressively for deposits.
Meanwhile, Nepal Rastra Bank (NRB) has continued to absorb liquidity from the market even for longer durations through tools such as deposit collection auctions and the Standing Deposit Facility (SDF) as banks are awash with loanable funds.
Nepse plunges by 1. 55 points on Sunday
The Nepal Stock Exchange (NEPSE) plunged by 5. 15 points to close at 2, 540 . 57 points on Sunday.
Similarly, the sensitive index dropped by 1. 44 points to close at 439. 44 points.
A total of 7,957,056-unit shares of 337 companies were traded for Rs 3. 89 billion.
Meanwhile, Sagar Distillery Limited (SAGAR)
were the top gainer today with its price surging by 9. 99 percent.
Likewise, Bhugol Energy Development Company Limited (BEDC) was the top loser as its price fell by 10. 00 percent.
At the end of the day, the total market capitalization stood at Rs 1. 44 trillion.
Gold price drops by Rs 6, 900 per tola on Sunday
The price of gold has dropped by Rs 6, 900 per tola in the domestic market on Sunday.
According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 242, 800 per tola today. It was traded at Rs 249, 700 per tola on Friday.
Similarly, the silver is being traded at Rs 3, 135 per tola.
