Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Commercial banks in Nepal have once again reduced their interest rates on fixed deposits, with the changes taking effect from the beginning of Asoj (mid-September). The latest adjustment comes amid improving liquidity in the banking sector and declining market lending rates.
According to the new schedule, the average fixed deposit rate for individual accounts has dropped by 0.12 percentage points to 5.46 percent in Asoj, compared to 5.58 percent in Bhadra. Similarly, the average institutional fixed deposit rate fell by 0.09 percentage points to 3.87 percent, down from 3.96 percent in the previous month.
Nine Banks Reduce Rates, Two Increase
Out of 20 commercial banks, nine reduced their deposit rates, two raised them, while the rest kept rates unchanged.
Banks that lowered interest rates include:
Agriculture Development Bank
Everest Bank
Nepal Bank
Kumari Bank
Nepal SBI Bank
Prime Bank
Citizens Bank
Sanima Bank
NIC Asia Bank
Meanwhile, Laxmi Sunrise Bank and Standard Chartered Bank increased their deposit rates in Asoj compared to Bhadra.
Other major banks—including Global IME Bank, Prabhu Bank, Machhapuchchhre Bank, NMB Bank, Himalayan Bank, Siddhartha Bank, Nabil Bank, Rastriya Banijya Bank, and Nepal Investment Mega Bank (NIMB)—kept their rates unchanged.
Sector Trends
The continued decline in fixed deposit rates reflects the easing liquidity crunch in Nepal’s banking and financial sector. As per Nepal Rastra Bank’s latest macroeconomic report, commercial banks’ weighted average deposit rate stood at 4.02 percent, while lending rates averaged 7.76 percent in the first month of FY 2025/26.
Bankers say falling deposit rates could encourage borrowers by lowering lending costs, but depositors may feel pressured by shrinking returns on savings. The reduction trend also indicates that the banking sector is aligning with declining inflation, which stood at 1.68 percent in mid-August 2025, one of the lowest levels in recent years.
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