KATHMANDU: Nepal’s commercial banks have announced their interest rates for Bhadra, with average deposit rates declining further from Shrawan as excess liquidity continues to persist in the banking system.
The average maximum interest rate on individual deposits has dropped by 0.0315 percentage points to 4.136% in Bhadra, down from 4.1675% in Shrawan. Likewise, the average rate offered on institutional deposits has decreased to 3.081% from 3.116% a month earlier.
Five commercial banks have lowered their deposit rates for Bhadra. Siddhartha Bank has made the biggest reduction, cutting its individual deposit rate by 0.29 percentage points and its institutional deposit rate by 0.20 percentage points. Its new rates are 3.76% for individual deposits and 3.05% for institutional deposits.
Nepal Bank has reduced its individual deposit rate by 0.10 percentage points to 4.15%, while its institutional deposit rate has been cut by 0.50 percentage points to 3.50%.
Likewise, Citizens Bank has set its individual deposit rate at 3.85%, while Kumari Bank is offering 3.76%. Standard Chartered Bank has lowered its rate to 3.80%. The other 15 commercial banks have kept their Shrawan interest rates unchanged for Bhadra.
Nabil Bank and Prabhu Bank continue to offer the highest individual deposit rate among commercial banks, at 4.55%. Nepal Investment Mega Bank, NMB Bank, Sanima Bank, Machhapuchchhre Bank, Rastriya Banijya Bank and Global IME Bank are among those maintaining their previous rates in Bhadra.
The continued reduction in deposit rates reflects the banking sector’s persistent excess liquidity and relatively weak demand for credit. As funds continue to accumulate within the financial system, banks are seeking to lower their deposit costs while keeping interest rates at relatively low levels.
The trend suggests that liquidity conditions in Nepal’s banking sector remain comfortable, while subdued credit demand continues to exert downward pressure on deposit rates.
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