Kathmandu: Commercial banks have revised their interest rates for the month of Kartik 2081, showing a general decline compared to the rates offered in Ashwin. The reductions aim to support liquidity management and sustain economic activity following the festive season.
According to the new rate structure, the average maximum interest rate for individual depositors has dropped from 6.398% in Ashwin to 6.1878% in Kartik, representing a reduction of 0.2102 percentage points. Similarly, the average institutional deposit rate has declined from 5.102% to 4.9175%, marking a decrease of 0.1845 percentage points.
Several major banks, including Himalayan Bank, Citizens Bank International, and NIC Asia Bank, have reduced their interest rates for both individual and institutional depositors. For instance, Citizens Bank’s maximum interest rate for individuals fell from 6.5% to 5.75%, while Himalayan Bank’s rate decreased from 7% to 6.25%. Similarly, NIC Asia Bank reduced its individual deposit rate from 7.18% to 6.99%.
Only Sanima Bank increased its individual interest rate from 5.9% to 6.15%, demonstrating a slight 0.25 percentage point rise. However, institutional rates remained unchanged for many banks, such as Nepal SBI Bank and Rastriya Banijya Bank, indicating stability for large-scale depositors.
Notably, the highest rate cut for individuals came from Agriculture Development Bank, which lowered its rate by 0.314 percentage points to 5.756%. Meanwhile, banks like Prime Commercial Bank and Standard Chartered Bank also made reductions in the range of 0.2 to 0.5 percentage points.
The declining trend reflects banks’ cautious approach to maintaining liquidity amidst reduced economic activity following Dashain. Lower interest rates are expected to encourage borrowing, supporting business operations and investment. However, depositors may find the reduced rates less attractive, possibly prompting shifts in savings behavior.
Analysts predict that as the festive season concludes and the financial system adjusts, interest rates may remain low in the near term to stimulate lending and economic recovery.
