KATHMANDU, July 16: The newly announced monetary policy has had an immediate impact on interest rates, with several commercial banks lowering their rates at the start of Fiscal Year 2025/26 (beginning mid-July).
In response to Nepal Rastra Bank’s (NRB) decision to reduce all rates within the interest rate corridor, commercial banks have begun adjusting their deposit interest rates accordingly.
Revised interest rate corridor system introduced
According to new disclosures for the month of Shrawan (mid-July to mid-August), 13 out of the 20 commercial banks have reduced their interest rates. Four banks have kept their rates unchanged, while two have increased them.
On average, the maximum interest rate on deposits has declined by 0.2 percentage points. In Asar (mid-June to mid-July), the average interest rate on individual fixed deposits was 6.91 percent, which has now dropped to 6.73 percent for Shrawan.
Nepal Bank and Agricultural Development Bank have both set their interest rates at 5.40 percent. Laxmi Sunrise Bank has lowered its rate from 5.75 to 5.50 percent. Prabhu Bank has made a notable reduction, cutting its rate from 6.10 to 4.25 percent. Kumari Bank has reduced its rate from 5.71 to 5.41 percent, Prime Bank from 6.25 to 6.00 percent, Rastriya Banijya Bank from 6.00 to 5.50 percent, Nepal SBI Bank from 5.50 to 5.35 percent, and Citizens Bank from 5.65 to 5.50 percent. Sanima Bank has fixed its rate at 6.18 percent, while Everest Bank has brought its rate down from 6.55 to 6.25 percent.
Meanwhile, Machhapuchchhre Bank, Siddhartha Bank, Global IME Bank, and NMB Bank have kept their interest rates unchanged. In contrast, Himalayan Bank has increased its rate to 6 percent, and Standard Chartered Bank has raised it to 6.26 percent.
As part of the monetary policy for FY 2025/26, the NRB has reduced the bank rate from 6.5 percent to 6 percent, the policy rate from 5 percent to 4.5 percent, and the deposit collection rate from 3 percent to 2.75 percent.
