Most banks keep rates unchanged

 

Most commercial banks in Nepal have kept their interest rates unchanged for the month of Magh (mid-Jan to mid-Feb). Of the 20 commercial banks in the country, 17 have maintained their interest rates on individual fixed deposits for the 10th month of fiscal year 2024-25, while two have lowered their rates, and one has raised.

Interest rates on deposits are not increasing as credit expansion by banks has been slow due to the prolonged economic slowdown. Because of excess liquidity in the banking system, the central bank mopped up Rs 40bn through a deposit auction on Sunday.

Laxmi Sunrise Bank is the only Class ‘A’ bank that has raised its interest rate for the new month. The bank, which offered 5.5 percent interest on individual fixed deposits in Poush (mid-Dec to mid-Jan), is now offering 5.75 percent in Magh.

Agricultural Development Bank Ltd (ADBL) and Nepal SBI Bank have lowered their interest rates on individual fixed deposits. ADBL, which offered 5.57 percent interest in Poush, is now offering 5.51 percent. It has kept the interest rate on institutional fixed deposits unchanged at 3.25 percent. Meanwhile, Nepal SBI Bank has decreased its rates by 0.5 percentage points for both individual and institutional deposits. Nepal SBI has fixed interest rates for individual and institutional fixed deposits at 5.5 percent and 4.5 percent, respectively, for Magh.

Citizens Bank International has raised its interest rate on institutional fixed deposits by 0.5 percentage points to 4.5 percent. The bank has kept the interest rate on individual fixed deposits unchanged at 5.65 percent.

NIC Asia Bank and NMB Bank are offering the highest interest rate of 6.6 percent on individual fixed deposits in Magh. The two banks are also offering the highest interest rate of 5.6 percent on institutional fixed deposits. Nepal SBI Bank is offering the lowest interest rate of 5.5 percent on individual fixed deposits. ADBL and Standard Chartered Bank are offering the lowest interest rate of 3.25 percent on institutional fixed deposits.

Nepal Bank Ltd, which has kept its interest rate on individual fixed deposits unchanged, has lowered interest rate on institutional fixed deposits by 0.55 percentage points to 4.15 percent.

Everest Bank Ltd, Global IME Bank Ltd, Himalayan Bank Ltd, Kumari Bank Ltd, Machhapuchchhre Bank Ltd, Nabil Bank Ltd, Nepal Investment Mega Bank Ltd, NIC Asia Bank, NMB Bank, Prabhu Bank Ltd, Prime Commercial Bank Ltd, Rastriya Banijya Bank Ltd, Sanima Bank Ltd, Siddhartha Bank Ltd and Standard Chartered have kept their deposit interest rates unchanged.