Commercial Banks Further Slash Fixed Deposit Interest Rates

Commercial banks have once again lowered the maximum average interest rate on individual fixed deposits for the month of Ashoj compared to Bhadra. According to the latest notice published by the Nepal Bankers’ Association, the rate has dropped from 5.577 percentage points in Bhadra to 5.4635 percentage points in Ashoj, marking a decline of 0.11 percentage points.

Out of 20 commercial banks, nine have reduced their rates. Prime Commercial Bank, Sanima Bank, and Everest Bank slashed their rates by 0.5 percentage points, while Citizens Bank and NIC Asia Bank reduced them by 0.25 percentage points. Similarly, Kumari Bank lowered its rate by 0.2 percentage points.

However, not all banks opted for cuts. Laxmi Sunrise Bank and Standard Chartered Bank increased their rates by 0.25 and 0.05 percentage points, respectively. The remaining nine banks maintained the same rates as in Bhadra.

Among the banks, Kumari Bank now offers the lowest maximum rate at 5.01 percent. On the other hand, NIC Asia, Machhapuchchhre, Global IME, NMB, and Himalayan Bank continue to offer the highest rate of 6 percent.

Institutional fixed deposit rates also witnessed a decline. The maximum average rate fell by 0.0885 percentage points, with seven banks reducing their rates, while 13 banks continued with the same rates as the previous month.