Commercial Banks Cut Base Rates as Liquidity Improves

Nepal's commercial banks have lowered their average base rate for Shrawan of the fiscal year 2083/84, signaling a further decline in lending rates amid improving liquidity in the banking system. According to the latest data, the average base rate of 20 commercial banks fell from 4.97% in Asar to 4.90% in Shrawan, reflecting lower funding costs and a continued buildup of lendable resources. The decline is expected to provide relief to businesses, industries, and individual borrowers by making bank loans more affordable. Among the 20 commercial banks, 17 reduced their base rates while the remaining three kept them unchanged, with no bank reporting an increase. State-owned Rastriya Banijya Bank maintained the lowest base rate at 4.17%, followed by Standard Chartered Bank Nepal at 4.21% and Everest Bank at 4.38%. Nepal Investment Mega Bank recorded the largest monthly reduction, cutting its base rate by 0.26 percentage points to 4.64%, while Nabil Bank and Nepal Bank also lowered their rates to 4.44% and 4.50%, respectively. Other major lenders, including Global IME Bank, Agricultural Development Bank, Sanima Bank, Prabhu Bank, Machhapuchchhre Bank, Siddhartha Bank, Prime Commercial Bank, Laxmi Sunrise Bank, NMB Bank, Citizens Bank International, Kumari Bank, Nepal SBI Bank, Himalayan Bank, and NIC Asia Bank also maintained comparatively lower base rates, with NIC Asia recording the highest base rate at 5.91% despite a monthly decline. Analysts say the continued fall in base rates is likely to reduce borrowing costs, encourage fresh credit expansion, and support Nepal's gradual economic recovery.