15 Commercial Banks Cut Deposit Rates for Kartik

Fifteen commercial banks have lowered their interest rates on deposits for the month of Kartik (mid-October to mid-November), while five others have kept their rates unchanged.

Siddhartha Bank, Global IME Bank, Nepal Bank, Kumari Bank, and Rastriya Banijya Bank maintained their fixed deposit rates for individual customers. The average rate across the commercial banking sector has now declined to 5.1 percent from 5.37 percent in the previous month.

Four banks—Agricultural Development, Himalayan, Prabhu, and Nabil—have dropped their maximum rates below 5 percent. NMB Bank and Machhapuchhre Bank reduced their rates from 6 percent to 5 percent, while Global IME retained its 6 percent rate.

At one point, Nepali banks offered deposit rates exceeding 12 percent, driven by acute liquidity shortages in the financial system.

Since the Nepal Bankers’ Association discontinued its consensus-based interest rate policy at the start of fiscal year 2023/24, individual banks have been free to set their own rates. The trend has largely been downward, with revisions allowed every month.

Under regulatory requirements, banks must publish their interest rates for the upcoming month by the final day of the current month.