Revised interest rates: Banks give away up to 10 percent on fixed deposits

KATHMANDU: Banks have raised interest rate effective from last Friday (September 17) after the market started witnessing crunch of investable fund.

Banks have announced new interest rates on Fixed Deposit (FD) up to maximum of 10 percent. As per data released by the banks, Sunrise Bank is offering highest interest on fixed deposit of 10.7 percent while Standard Chartered is offering least interest on fixed deposit of 7.5 percent.

In terms of institutional fixed deposits, Prime Commercial Bank is offering maximum interest rate of 9.75 percent while Mega Bank is offering 9.55 percent interest on institutional fixed deposits.

Similarly, NMB Bank is offering 9.52 percent, Sanima Bank 9.51 percent, Global IME Bank 9.50 percent, Nabil Bank 9.26, NCC Bank 9.26, Century Bank 9.25 percent, Himalayan Bank 9 percent, Siddhartha Bank 9.05 percent, Nepal Investment Bank 9.02 percent and Laxmi Bank 9 percent interest on deposits.

Similarly, Bank of Kathmandu has set 8.77 percent interest rate on deposit, Nepal Bangladesh Bank 8.76 percent, Macchapucchre Bank 8.75 percent, Everest Bank 8.61 percent, NIC Asia Bank 8.60 percent, Nepal SBI Bank 8.55 percent, Civil Bank 8.55 percent, Kumari Bank 8.51 percent, Krishi Bikash Bank 8.5 percent, Prabhu Bank 8.25 percent, Rastriya Banijya Bank 8.60 percent, Nepal Bank 8.05 percent, Citizen Bank 8 percent, Standard Chartered Bank 7.55 percent.

In terms of ordinary deposits, banks have announced interest rates ranging from 4.26 percent to 6.26 percent. Banks have stated that interest will be charged by adding premium to the base rate.

The NRB statistics shows that the market is gradually witnessing liquidity crunch. As the result of this, banks are also finding it difficult to get interbank loans.

In a bid to fill this gap, banks have been utilizing NRB’s tools like Standing Liquidity Facility (SLF) and Repo. As per NRB, banks and financial institutions (BFIs) have raised Rs 352.29 billion through SLF (till Thursday) in the current fiscal year.

The NRB has issued repo worth Rs 70 billion to address the liquidity issue in the month of Bhadra alone.

Fiscal Nepal |
Sunday September 19, 2021, 01:43:04 PM |

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