Commercial Banks Reduce Interest Rates for Ashadh

KATHMANDU: Commercial banks in Nepal have announced a reduction in interest rates for the month of Ashadh (mid-June to mid-July), effective from June 15. The average interest rate on personal fixed deposits has been set at 6.86 percent, reflecting a continued trend of declining rates.

In the previous month of Jestha (mid-May to mid-June), the average interest rate on personal term deposits was reduced by 6.99 percent. For Ashadh, this average has further decreased by 0.13 percent. Additionally, the average interest rate for institutional term deposits has declined by 0.14 percent to 5.65 percent, down from 5.79 percent in Jestha.

Among the banks, 11 have reduced their interest rates for Ashadh, while only 3 have increased them. Meanwhile, Nepal Bank, Prabhu Bank, Siddharth Bank, and Standard Chartered Bank have maintained their interest rates at a constant 7 percent.

Specific Bank Rates for Ashadh:

NIC Asia Bank: Maximum interest rate of 7.69 percent for personal term deposits and 6.69 percent for institutional deposits. Previously, these rates were 7.80 percent and 6.80 percent, respectively.

Kumari Bank: Maximum interest rate of 6.56 percent for personal term deposits and 5.61 percent for institutional deposits. In Jestha, these rates were 7.06 percent and 6.26 percent, respectively.

Everest Bank: Maximum interest rate of 5.75 percent for personal term deposits and 4.75 percent for institutional deposits. Previously, these rates were 6.50 percent and 5.50 percent, respectively.

NMB Bank: Maximum interest rate of 7.69 percent for personal term deposits and 6.66 percent for institutional deposits. In Jestha, these rates were 7.80 percent and 6.80 percent, respectively.

Citizens International Bank: Maximum interest rate of 6.9 percent for personal term deposits and 5.9 percent for institutional deposits. Previously, these rates were 7 percent and 6 percent, respectively.

Sanima Bank: Maximum interest rate of 6.8 percent for personal term deposits and 5.8 percent for institutional deposits. In Jestha, these rates were 6.9 percent and 5.9 percent, respectively.

Prime Commercial Bank: Maximum interest rate of 6.75 percent for personal term deposits and 5.75 percent for institutional deposits. Previously, these rates were 7 percent and 6 percent, respectively.

Lakshmi Sunrise Bank: Maximum interest rate of 6.5 percent for personal term deposits and 5.5 percent for institutional deposits. In Jestha, these rates were 7 percent and 6 percent, respectively.

Global IME Bank: Maximum interest rate of 6.5 percent for personal term deposits and 5.5 percent for institutional deposits. Previously, these rates were 7.5 percent and 6.5 percent, respectively.

Rastriya Banijya Bank: Maximum interest rate of 6.22 percent for personal term deposits and 5.2 percent for institutional deposits. In Jestha, these rates were 6.4 percent and 5.35 percent, respectively.

Banks Increasing Interest Rates:

Himalayan Bank and Nabil Bank have increased their interest rates, setting a maximum interest rate of 8.25 percent for personal term deposits and 7 percent for institutional deposits.

The reduction in interest rates by most banks reflects a broader trend aimed at stimulating economic activity by making borrowing cheaper and encouraging spending and investment. However, a few banks have opted to increase their rates, providing higher returns for depositors.