KATHMANDU: Most Nepalese commercial banks have recently made the decision to reduce their deposit interest rates by an average of 0.14 percent annually for the upcoming month, beginning on Tuesday. The average deposit interest rate is now 6.73 percent instead of 6.87 percent after this revision. The shift is explained by the banking industry's surplus liquidity, which forced banks to lower interest rates in order to efficiently control operating expenses.
Thirteen of the twenty commercial banks under examination have declared reductions in their interest rates on deposits. Most notably, Himalayan Bank cut its rates by 0.75 percent to 7.5 percent annually, the biggest cut. Rastriya Banijya Bank, on the other hand, was the state-owned bank with the lowest interest rate on fixed deposits, paying 6.21 percent annually.
However, not all banks followed suit; five banks, including Nabil Bank, Standard Chartered Bank, Nepal Investment Mega Bank, Nepal SBI Bank, and Laxmi Sunrise Bank, have opted to maintain their existing interest rates unchanged. Everest Bank and Agriculture Development Bank even raised their interest rates on deposits during this period, showcasing varied strategies amidst the current financial environment.
