Banks decrease interest rates for Baishakh

Most of the commercial banks have reduced the deposit interest rates for the month of Baisakh as well. According to the new interest rate table published by the banks on Friday, the maximum average interest rate for personal term has decreased by 0.19 percentage points compared to March.

For the month of March, the maximum average interest rate of all 20 commercial banks was 7.25 percent for the month of Baisakh and remained at 7.06 percent for the month of Baisakh.

Compared to March, 13 banks have reduced interest rates in Baisakh while 5 banks have kept them constant. Two banks have increased interest rates. Krishi Bikas, Standard Chartered, Nabil, Himalayan and Nepal Investment Mega Bank have kept the maximum interest rate of personal term fixed for Baisakh.

Similarly, Everest and NMB have increased in Baisakh compared to March. Remaining 13 banks Nepal, Lakshmi Sunrise, Machhapuchhre, Prabhu, National Commercial, Global IME, Siddharth, Prime Commercial, Kumari, Sanima, SBI, Citizens and NIC Asia have reduced interest rates.

In the month of March, NIC Asia gave the highest number of 8.54 percent in the individual term, while NMB gave the highest number of 7.97 percent in the month of Baisakh. Now the interest rate of any bank on personal term deposits is not even 8 percent.

Inspite of more liquidity in the banking system, the interest rate has been reduced as the credit flow is low. There is a provision that the institutional interest rate can be given only less than 1 percentage point of the maximum interest rate given in the individual period. According to this, now the bank will not give more than 6.97 percent interest rate to the institutions.

Banks can reduce interest rates on savings and call deposits only after reducing the maximum interest rate on individual term deposits. The National Bank has arranged that the difference between the upper limit of individual term deposits and the minimum interest rate of savings should not be more than 5 percent. Due to this, the interest rate of savings will also decrease.

The National Bank has ordered the banks to reduce the fluctuations in the interest rate, as the basis for determining the interest rate, banks of the same category can take the average of the maximum interest rate of the previous month and increase it by only 10 percent. Banks have been publishing interest rates according to their strategy, canceling the consensus from July.

Maximum interest rate set by banks for individual term in the month of Baisakh (in percentage)

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