Majority of commercial banks except NIC Asia trim down deposit interest rates

KATHMANDU, MARCH 13: Twenty commercial banks have made public new interest rates on the deposits for the coming Nepali month of Chaitra (mid-March to mid-April). A majority of them i.e. 17 reduced interest rates for personal term deposits and institutional deposits. This is attributed to increased liquidity in the banking system and decreased credit flow.

Agriculture Development Bank fixed the interest rates of 5.6661 per cent for personal deposits and 4.51 per cent for institutional deposits, Kumari Bank set 7.51 percent for personal deposits and 6.51 per cent for institutional deposits, Nepal SBI 7.01 percent for personal deposits and 6.1 percent for the institutional deposit, NMB 7 per cent for personal deposits and 6 per cent for institutional deposits and Everest 6.5 percent for personal term deposits and 5.5 per cent for institutional deposits.

Similarly, Laxmi Sunrise established 75 percent for personal deposits and 6.5 percent for institutional deposits, Nepal Investment Mega fixed 7 percent for personal deposits and 6 percent for institutional deposits, Sanima 7.25 percent for personal deposits and 6 percent for institutional deposits, Nepal Bank 7 per cent for institutional deposits and 5 per cent for institutional deposits and Machchapuchchhre 7.75 percent for personal term deposits nd 6 percent for institutional deposits.

Likewise, Rasriya Banijya Bank determined the interest rates of 7 per cent for personal deposits and 5.35 percent for institutional deposits, Himalayan Bank set 7.5 per cent for personal term deposits and 6 per cent for institutional deposits, Standard Chartered 7 percent for personal term deposits and 5.25 percent for institutional deposits,

Also, Siddhartha fixed the interest rates of 7.5 percent for personal term deposits and .5 per cent for institutional deposits, Citizens set 7.75 per cent for personal deposits and 6.5 percent for institutional deposits, Nabil Bank 7.25 percent for personal term deposits and 6.25 percent for institutional deposits and Prime  7.25 percent and 6.25 percent for institutional deposits.

Meanwhile, two banks-Global IME and Prabhu- did not make any changes in the current interest rates. The former’s rate for personal term deposits is 7.6 percent with institutional deposits at 6.6 percent while the latter’s interest rates for personal deposits and institutional deposits are fixed at 7.5 percent and 6.5 percent respectively.

Notably, NIC Asia is the only bank to increase the interest rates for personal deposits and institutional deposits from mid-March to mid-April.   The interest rate for personal deposits stands at 8.548 and the same for institutional deposits is 7.54 percent. The bank apparently made an upward revision in its interest rates to manage liquidity better after facing the deposit withdrawals of large amounts due to widespread negative publicity.