BFIs adjust interest rates as cartelization scheme is cancelled

KATHMANDU: Following the termination of the interest rate cartelization scheme by the Nepal Bankers’ Association, individual banks have taken the initiative to determine their own interest rates. This move, aimed at promoting fairness and transparency, has resulted in a diverse range of interest rates across banks, which will come into effect from July 17th.

While a considerable number of banks have decided to decrease their interest rates, others have chosen to maintain or even raise them in an effort to attract deposits for future business opportunities.

Nabil Bank, one of the country’s largest banks, stands out by increasing its interest rates. Previously, all banks offered a uniform fixed deposit interest rate of 9.99 percent. However, regulatory provisions allowed for adjustments of up to 10 percent. In compliance with this provision, Nabil Bank has raised its maximum interest rate to 10.49 percent for specific terms.

Furthermore, Nabil Bank has introduced varying interest rates based on the deposit term. Throughout the term, the bank will provide a minimum interest rate of 9.49 percent. For savings accounts, Nabil Bank will offer interest rates ranging from 5.90 to 7.90 percent.

Prime Commercial Bank, NMB Bank, and Kumari Bank have also joined Nabil Bank in increasing their interest rates. Prime Commercial Bank now offers interest rates of 5.93 to 7.93 percent on savings accounts and has announced interest rates of up to 10.93 percent for specific terms.

NMB Bank has implemented fixed interest rates for different periods, ranging from a minimum of 9 percent to a maximum of 10.98 percent. Savings accounts with NMB Bank will earn interest rates from 5.98 to 7.98 percent.

On the other hand, while some banks have raised their interest rates, others have opted to lower them. National Commercial Bank, Prabhu Bank, Nepal SBI Bank, Machhapuchhre Bank, Everest Bank, Standard Chartered Bank, Siddhartha Bank, Sanima Bank, Nepal Bank, and Agricultural Development Bank have all reduced their interest rates.

The extent of the reduction varies among these banks. For instance, Rastriya Banijya Bank has set its term interest rate at 8.99 percent. Prabhu Bank will provide a maximum of 8.99 percent interest during the term, while Nepal SBI Bank has decreased its rate to 9.1 percent.

Similarly, Machhapuchhre Bank, Everest Bank, Standard Chartered Bank, Siddhartha Bank, Sanima Bank, Nepal Bank, and Agricultural Development Bank have also implemented reductions in their interest rates.

Himalayan Bank, Global IME Bank, Laxmi Bank, Sunrise Bank, and Citizens Bank have decided to maintain their existing interest rates, which indicates stability within the banking sector amidst these changes.

Fiscal Nepal |
Sunday July 16, 2023, 04:03:28 PM |

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