The average interest rate on individual deposits decreased by 0.0315 percentage points to 4.136 percentage points from 4.1675 percentage points in Bhadra, while the average rate of institutional deposits decreased to 3.081 percent from 3.116 percent in Bhadra.
Five banks cut interest rates
A total of five banks have reduced interest rates for the month of Bhadra. Siddhartha Bank has reduced the interest rate on individual deposits by 0.29 percentage points to 3.76 percent and institutional interest rate by 0.2 percentage points to 3.05 percent. Likewise, Nepal Bank cut its rate by 0.1 percentage point for individuals and 0.5 percentage points for institutional sector to 4.15 percent and 3.5 percent, respectively. Similarly, Citizens Bank has reduced the personal interest rate by 3.85 percent, Kumari Bank by 3.76 percent and Standard Chartered Bank by 3.8 percent.
Interest rates of 15 banks remain stable
Nabil Bank and Prabhu Bank are on the top position with the highest individual interest rate of 4.55 percent. Similarly, a total of 15 banks including Nepal Investment Mega, NMB, Sanima, Machhapuchchhre Bank, Rastriya Banijya Bank and Global IME Bank have kept the rates constant. Banks have continued with the strategy of cutting interest rates to reduce the cost of deposits due to the slowdown in demand for loans and the accumulation of money in banks.
