KATHMANDU: Banks and financial institutions in Nepal have announced their deposit interest rates for the month of Magh, continuing the trend of stability seen since Mangsir. Most institutions have refrained from altering the rates, while a few have made slight adjustments for fixed deposits ranging from three months to two years.
Everest Bank and NIC Asia Bank have marginally increased their short-term fixed deposit rates, but other banks, including major players, have maintained the rates set in Mangsir and Poush. According to banking officials, the stability in deposit and loan interest rates can be attributed to the lowest levels reached in recent times. Nepal Rastra Bank’s monetary policy of maintaining the deposit collection rate at 3% within the interest rate corridor has contributed to this trend.
In its recent monetary policy review, the central bank decided to keep the policy rate at 5%, applying psychological pressure on banks to maintain stability in interest rates. This move has further ensured that banks do not drastically alter their rates for deposits or loans.
Loan interest rates have also remained stable, with personal home loan rates falling below 7%. Many banks have issued notices offering loans at fixed interest rates below 8% for terms exceeding seven years. Vehicle loans, business loans, and working capital loans have similarly seen interest rates drop to their lowest points. However, despite lower rates, the demand for business loans has not shown significant growth, even though personal loans continue to be disbursed at a steady pace.
In Poush, there were some positive developments, with around NPR 65 billion in new loans disbursed, as per Nepal Rastra Bank’s statistics. This indicates a modest improvement in credit demand, though banks remain cautious about further reductions in interest rates.
For the month of Magh, NIC Asia Bank has retained its interest rates for fixed deposits of up to three months at 3.50% and up to one year at 4%. The bank has slightly increased the rate for deposits between one and five years, raising it from 4.65% to 5%. Similarly, Laxmi Sunrise Bank has continued its practice of offering 4% interest on fixed deposits of three to six months. For deposits exceeding five years, the bank provides an interest rate of 5.75%.
Everest Bank has made a minor adjustment, raising interest rates for fixed deposits of three months to two years by 0.25 percentage points, increasing the rate from 4% in Poush to 4.25% in Magh. For deposits of more than five years, the bank continues to offer a rate of 6%. Prabhu Bank has opted not to alter its rates, maintaining 3.1% for deposits of six months to one year, 4.1% for one to five years, and 5.1% for deposits exceeding five years.
Other leading institutions, such as Nabil Bank, Nepal Bank Limited, Kumari Bank, Global IME Bank, and Sanima Bank, have also kept their interest rates unchanged from Poush. This consistency reflects the broader trend of stability in Nepal’s banking sector, which is expected to persist in the coming months.