Skip to content
|Loading...
Share Gyan home
EBook

Interest Rate Cut: Nepal’s Banks Lower Deposit Rates Amid Excess Liquidity

Twenty commercial banks in Nepal have announced their new interest rates for Bhadra, with the average maximum deposit rate declining further from the previous month as excess liquidity continues to build up in the banking system.

Published By Share Gyan
Interest Rate Cut: Nepal’s Banks Lower Deposit Rates Amid Excess Liquidity

Nepal’s 20 commercial banks have published their revised interest rates for Bhadra, with deposit rates declining further compared to Shrawan amid continued high liquidity in the banking system. The average maximum interest rate on individual deposits has fallen from 4.1675% in Shrawan to 4.136% in Bhadra, a decline of 0.0315 percentage points. Similarly, the average rate for institutional deposits has decreased from 3.116% to 3.081%. Five banks have reduced their deposit rates for the month. Siddhartha Bank made the largest cut, lowering its individual deposit rate by 0.29 percentage points to 3.76% and its institutional rate by 0.20 percentage points to 3.05%. Nepal Bank also reduced its individual rate by 0.10 percentage points to 4.15% and its institutional rate by 0.50 percentage points to 3.50%. Citizens Bank, Kumari Bank and Standard Chartered Bank have also lowered their rates, setting individual deposit rates at 3.85%, 3.76% and 3.80%, respectively. Meanwhile, 15 banks have kept their interest rates unchanged from Shrawan. Nabil Bank and Prabhu Bank continue to offer the highest maximum individual deposit rate at 4.55%. Nepal Investment Mega Bank, NMB Bank, Sanima Bank, Machhapuchchhre Bank, Rastriya Banijya Bank and Global IME Bank are among the institutions maintaining their existing rates. The continued decline in deposit rates reflects weak credit demand and persistent excess liquidity, prompting banks to reduce their cost of funds by lowering deposit interest rates.

Related News

SEBON Approves 50% Right Share Issuance of NIC Asia Bank Worth Rs 7.45 Billion

The Securities Board of Nepal (SEBON) has granted preliminary approval to NIC Asia Bank Limited to issue 50 percent right shares at a 1:0.50 ratio. The bank will issue 74,587,835 shares worth Rs 7.45 billion at a face value of Rs 100 per share.

NRB to Sell Gold Coins and Silver Medallions for Tihar from November 5

Nepal Rastra Bank (NRB) will sell 2.5-gram gold coins and 10-gram silver medallions featuring Goddess Laxmi and Lord Ganesh on November 5 and 6 (Kartik 19 and 20) from its Minting Division in Babarmahal, Kathmandu.

Himalayan Laghubitta Proposes 5% Dividend for FY 2082/83

Himalayan Laghubitta (HLBSL) has proposed a 5% dividend for shareholders, comprising 4.75% bonus shares and 0.25% cash dividend for the fiscal year 2082/83.

Rastriya Banijya Bank Reports 175.52% Growth in Q1 Net Profit

Rastriya Banijya Bank Limited has reported a remarkable 175.52% year-on-year growth in net profit, earning Rs. 1.64 billion in the first quarter of FY 2083/84, compared to Rs. 598.73 million in the corresponding period of the previous fiscal year. The significant growth was driven by a sharp increase in net interest income and a substantial decline in impairment charges.

Kumari Bank Reports Rs. 1.07 Arba Net Profit in Q1; Operating Profit Jumps 32.39%

Kumari Bank Limited (KBL) has reported a modest 1.70% year-on-year growth in net profit, earning Rs. 1.07 billion in the first quarter of FY 2083/84, compared to Rs. 1.06 billion in the corresponding period last fiscal year. Despite a decline in net interest income, the bank recorded strong growth in operating profit, supported by a significant reduction in impairment charges and operating expenses.

NMB Bank Reports 27.11% Growth in First-Quarter Net Profit

NMB Bank Limited has reported a 27.11% year-on-year increase in net profit, earning Rs. 1.16 billion in the first quarter of FY 2083/84, compared to Rs. 915.98 million in the corresponding period of the previous fiscal year. The growth was supported by higher operating income, increased net interest income, and a significant decline in impairment charges.

Companies in This News