Commercial Banks' Base Rate Drops by 0.22% in October

The base rate of commercial banks has decreased by 0.22% in October, bringing it down to 7.69%. In September, the base rate was 7.91%, but the excess liquidity in the banking system has led to a reduction in deposit interest rates, which in turn has contributed to the decline in the base rate.

Base Rate Decline:

• In October, the average base rate fell to 7.69%, down from 7.91% in September.

• Standard Chartered Bank’s base rate dropped to 6.03%, the lowest among all, while the base rate of Rastriya Banijya Bank stood at 6.37%.

  

Bank-wise Base Rate Changes:

1. Standard Chartered Bank:

   • Bhadra: 6.22%

   • Ashoj: 6.03%

2. Rastriya Banijya Bank:

   • Bhadra: 6.66%

   • Ashoj: 6.37%

3. Everest Bank:

   • Bhadra: 7.29%

   • Ashoj: 7.04%

4. Nabil Bank:

   • Bhadra: 7.24%

   • Ashoj: 7.42%

5. Nepal Bank:

   • Bhadra: 7.54%

   • Ashoj: 7.28%

6. Global IME Bank:

   • Bhadra: 7.77%

   • Ashoj: 7.47%

7. Nepal Investment Mega Bank:

   • Bhadra: 7.64%

   • Ashoj: 7.49%

8. Agricultural Development Bank:

   • Bhadra: 7.96%

   • Ashoj: 7.64%

9. Sanima Bank:

   • Bhadra: 7.83%

   • Ashoj: 7.65%

10. NMB Bank:

• Bhadra: 7.98%

• Ashoj: 7.72%

11. Siddhartha Bank:

• Bhadra: 7.93%

• Ashoj: 7.74%

12. Prabhu Bank:

• Bhadra: 7.95%

• Ashoj: 7.77%

13. Machhapuchchhre Bank:

• Bhadra: 8.00%

• Ashoj: 7.80%

14. Nepal SBI Bank:

• Bhadra: 8.11%

• Ashoj: 7.91%

15. Laxmi Sunrise Bank:

• Bhadra: 8.39%

• Ashoj: 8.17%

16. Citizens Bank:

• Bhadra: 8.42%

• Ashoj: 8.25%

17. Prime Commercial Bank:

• Bhadra: 8.57%

• Ashoj: 8.35%

18. Himalayan Bank:

• Bhadra: 8.53%

• Ashoj: 8.39%

19. Kumari Bank:

• Bhadra: 8.90%

• Ashoj: 8.46%

20. NIC Asia Bank:

• Bhadra: 9.91%

• Ashoj: 9.06%

Loan Premium Reduction: Banks generally charge a premium of 1.5% to 5% on top of the base rate for loans. However, some banks have introduced loan plans with premiums as low as 0.25%.

Banking Liquidity: Excess liquidity in the banking system has led banks to reduce deposit interest rates, impacting the base rate as well. This continuous decline poses challenges for liquidity management in the banking sector but may also stimulate loan demand.