The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
As of mid-July 2025, government banks (NBL 10.05%, RBB 9.46%, ADBL 11.93%) show higher base rates compared to several private banks such as Himalayan (8.31%), NIC Asia (8.87%), and Citizens (8.94%). This indicates that government banks remain costlier credit providers, while private banks leverage efficiency and competitiveness to attract borrowers.
As of Asadh 2082, NIC Asia Bank (3.99%) leads in spread rates, followed by Siddhartha, NMB, Machhapuchhre, and Prabhu Bank, all exceeding the sector average of 3.66%. This indicates stronger profitability margins for these banks. Meanwhile, NIMB, Standard Chartered, and Everest Bank operate with leaner spreads, balancing competitiveness with profitability.
The base rate matters because it is the foundation of lending rates in Nepal. For borrowers, it determines loan affordability, and for investors, it signals how competitive and profitable a bank might be. As of mid-July 2025, Nepal’s average base rate is 5.99%, with RBB (4.78%) and Standard Chartered (4.96%) offering the lowest lending costs, while banks like NIC Asia (7.04%) and Himalayan (6.57%) operate at higher ends.
As of mid-July 2025, NIC Asia Bank leads with the highest spread rate of 3.99%, followed by NMB, Machhapuchhre, and Prabhu in the 3.7–3.8% range. On the other hand, Nepal Investment Mega Bank (3.01%) and Standard Chartered (3.53%) operate on thinner margins. Overall, the sector’s average spread stands at 3.66%, reflecting stable profitability trends.
As of mid-July 2025, the lowest base rate in Nepal’s banking sector is offered by Standard Chartered Bank at 4.96%, followed by Nabil Bank and Global IME in the 5.5–5.7% range. The average base rate across the sector is 5.99%, indicating cheaper credit than in past years. Borrowers benefit most from banks with strong liquidity positions and efficient operations, while those tied to high-base-rate banks face costlier credit.
Nepal’s commercial banks now hold over Rs. 65 trillion in deposits, with state-owned and large private banks leading the race. While this strengthens liquidity and depositor safety, the relatively low CD ratio highlights under-utilization of funds. The next challenge will be to channel these deposits into productive lending to fuel economic growth.
Nepal’s banks, as of July 2025, hold average SLR at 30.13% and Net Liquidity at 35.07%, showing the system is well-protected against liquidity shocks. RBB, Standard Chartered, and ADBL stand out as leaders in depositor safety, while private giants like Global IME and NIC Asia also maintain healthy cushions. A few banks operate with leaner liquidity buffers, meaning depositor safety remains strong overall but varies by institution.
