Kathmandu: The interest rates for fixed deposits in commercial banks, effective from the beginning of Ashoj, have been updated. Sanima Bank has reduced its maximum interest rate for individual fixed deposits from 6.2% in Bhadra to 5.9% in Ashoj, a decrease of 0.30%. On the other hand, Nepal Bank increased its rate from 5.25% to 5.95%, marking a 0.70% hike.

Rastriya Banijya Bank slightly decreased its rate by 0.07%, offering 6% interest, down from 6.07%. Nepal SBI Bank also reduced its rate to 6%, a drop of 0.25% from its previous 6.25%. Similarly, Everest Bank brought down its rate by 0.10% to 6%.

Kumari Bank showed the largest decline, reducing its rate from 6.71% to 6.01%, a 0.70% drop. Conversely, NMB Bank recorded the highest rate for Ashoj, offering 7.41%, an increase of 0.91% from its previous rate of 6.5%.

Most other banks, such as Prabhu Bank, Global IME Bank, and Siddhartha Bank, retained their interest rates. NIC Asia Bank, which had one of the highest rates at 7.41% in Bhadra, slightly reduced it to 7.18%.

The average fixed deposit interest rate across all banks stands at 6.38% for Ashoj, down from 6.53% in Bhadra.

This change in interest rates reflects adjustments in the financial market, with banks either increasing or decreasing their fixed deposit rates to align with market demands and liquidity conditions.

The table provided compares the fixed deposit interest rates for individuals in various commercial banks in Nepal, effective from Ashoj (mid-September to mid-October) and Bhadau (mid-August to mid-September). Here’s an analysis based on the differences and trends observed:

Key Observations:
Overall Trend:

• The average interest rate for fixed deposits in Ashoj is 6.38%, which is a decrease from 6.53% in Bhadra.
• This indicates a slight overall decline of 0.15% in fixed deposit rates across the banking sector for this period.

Banks with Decreased Rates:

• Sanima Bank has decreased its rate from 6.2% to 5.9%, a reduction of 0.30%.
• Kumari Bank saw one of the largest declines, dropping from 6.71% to 6.01%, a significant reduction of 0.70%.
• Everest Bank reduced its rate by 0.10%, while Nepal SBI Bank and Nabil Bank decreased by 0.25% each.
• NIC Asia Bank lowered its rate from 7.41% to 7.18%, a decline of 0.23%.
• Prime Commercial Bank and Citizens Bank also saw declines, with reductions of 0.50% and 0.35% respectively.

Banks with Increased Rates:

• Nepal Bank increased its rate by 0.70%, going from 5.25% to 5.95%, the largest increase among the banks.
• NMB Bank also saw a notable increase, rising from 6.5% to 7.41%, an increase of 0.91%, the largest gain in interest rate.
• Agricultural Development Bank saw a marginal increase of 0.01%.

Banks with Unchanged Rates:

• Several banks maintained the same interest rate across both months, such as Prabhu Bank, Global IME Bank, Siddhartha Bank, Nepal Investment Mega Bank, Laxmi Sunrise Bank, Himalayan Bank, and Standard Chartered Bank. These banks kept their rates constant, reflecting stability in their deposit pricing strategy.

Highest and Lowest Rates:

• NIC Asia Bank continues to offer one of the highest fixed deposit rates for individuals at 7.18% in Ashoj, despite the slight reduction from the previous month.
• The lowest rate is offered by Sanima Bank at 5.9% in Ashoj after reducing its rate from 6.2%.

Summary:

• There is a general trend of slight reductions in fixed deposit interest rates across most banks for the month of Ashoj.
• A few banks, such as Nepal Bank and NMB Bank, have increased their rates, but the overall average rate has declined.
• NIC Asia Bank and NMB Bank stand out with the highest rates, while Sanima Bank and Nepal Bank offer the lowest rates.

This change may be influenced by market conditions, liquidity requirements, or other economic factors affecting the banking sector in Nepal. The banks’ varied responses in adjusting interest rates reflect different strategies in managing deposits and attracting customers during this period.