The average interest rate of deposits has decreased in the month of Ashoj as compared to Bhadra, due to excess liquidity in the banking system and the demand for loans has remained stagnant.
The average maximum interest rate on individual deposits of 20 commercial banks for the month of Ashoj decreased by 0.0465 percentage points to 4.0895 percent from 4.136 percent in Bhadra. Similarly, the average interest rate of institutional deposits has also decreased by 0.0145 percentage points to 3.0665 percent in Ashoj compared to 3.081 percent in Bhadra.
Among them, Everest Bank has cut the maximum interest rate this month. The bank has reduced the individual deposit rate by 0.55 percentage points to 3.5 percent and institutional deposit rate by 0.25 percentage points to 3.25 percent.
Similarly, Nabil Bank has reduced the interest rate on individual deposits by 0.3 percentage points to 4.25 percent and the institutional rate has been kept unchanged at 3.01 percent. Among other banks, Standard Chartered Bank reduced the individual interest rate by 0.05 percentage points to 3.75 percent, Kumari Bank by 0.03 percentage points to 3.73 percent, while Citizens Bank reduced the institutional interest rate by 0.25 percentage points to 2.75 percent.
On the other hand, Sanima Bank has increased the interest rate on institutional deposits by 0.21 percentage points to 3.51 percent and has continued the interest rate on individual deposits by 4.5 percent.
Prabhu Bank has topped the list with the highest individual interest rate of 4.55 percent. A total of 15 banks, including Machhapuchchhre Bank, Nepal Investment Mega Bank, NMB Bank, Agriculture Development Bank and Rastriya Banijya Bank, have not changed their interest rates for the month of Ashoj.
