From September 1st, banks have reduced interest rates
Author
NEPSE trading

Kathmandu, September 1st: The new bank interest rates that came into effect on September 1st have brought some changes to the financial sector. Commercial banks have reduced deposit interest rates, which is expected to lower the base rate of banks, providing some relief to borrowers through reduced loan interest rates.
Decline in Deposit Interest Rates
Twenty commercial banks have announced the interest rates effective from September. Prime Commercial Bank has increased the interest rate on personal fixed deposits, while seven banks have kept it unchanged. Twelve banks have reduced their interest rates, leading to a decrease in the average interest rate.
Average interest rate in August: 6.73%
Average interest rate in September: 6.54%
Banks Reducing Interest Rates
The banks that have reduced interest rates include Agricultural Development Bank, Rastriya Banijya Bank, SBI Bank, Nepal Bank, Sanima Bank, Nepal Investment Mega Bank, Siddhartha Bank, Prabhu Bank, NMB Bank, NIC Asia Bank, Himalayan Bank, and Everest Bank.
The highest interest rate on personal fixed deposits is 7.41%, maintained by NMB Bank and NIC Asia Bank.
Changes in Policy Rates
The current monetary policy has reduced the policy rate from 5.5% to 5%. The upper limit of the interest rate corridor has been lowered from 7% to 6.5%, helping banks to reduce interest rates.
Interest Rates Based on Deposit Types
Long-term fixed deposits: Somewhat higher interest rates.
Short-term fixed deposits: Slightly lower interest rates.
Institutional fixed deposits: At least 1 percentage point lower than personal fixed deposits.
Personal remittance fixed deposits: 1 percentage point higher interest.
Comparison of Major Banks' Interest Rates
Agricultural Development Bank: 6.29% in August, 6.065% in September.
Rastriya Banijya Bank: 6.21% in August, 6.07% in September.
NMB Bank: 7.53% in August, 7.41% in September.
NIC Asia Bank: 7.53% in August, 7.41% in September.
Relief for Borrowers
As interest rates decrease, the base rate has also declined, which is expected to provide relief to borrowers through reduced loan interest rates.