Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU — Commercial banks in Nepal have published revised deposit interest rates for the Nepali month of Jestha (mid-May to mid-June), with most banks trimming rates compared to Baisakh, reflecting continued easing in the banking sector’s cost of funds.
According to newly published rates, the average interest rate on personal fixed deposits across commercial banks has declined to 4.34 percent in Jestha, down from 4.40 percent in Baisakh, indicating a modest downward trend in deposit returns amid improving liquidity conditions in Nepal’s banking system.
Similarly, the average interest rate on institutional deposits has also edged lower, falling from 3.22 percent to 3.20 percent during the review period.
Among major lenders, NMB Bank reduced its deposit rates for Jestha. The bank fixed interest at 4.8 percent for individual deposits and 4 percent for institutional deposits, representing a 0.2 percentage point decline in personal deposit rates compared to the previous month.
Meanwhile, Rastriya Banijya Bank maintained its existing rates unchanged, keeping 4.75 percent interest on personal deposits and 4 percent on institutional deposits.
Likewise, Nabil Bank retained 4.55 percent interest on personal deposits and 3.01 percent on institutional deposits. Prabhu Bank continued with 4.55 percent for personal deposits and 2.75 percent for institutional deposits, while Nepal Investment Mega Bank maintained 4.5 percent for individual deposits and 3.5 percent for institutional deposits.
Several other banks, including Sanima Bank, Laxmi Sunrise Bank, Global IME Bank, and Machhapuchchhre Bank, kept their personal fixed deposit rates unchanged at 4.5 percent.
Among the banks lowering rates, NIC Asia Bank cut interest rates for both individual and institutional depositors by 0.25 percentage points, fixing rates at 4.5 percent for personal deposits and 3.5 percent for institutional deposits.
Similarly, Himalayan Bank and Nepal Bank lowered personal deposit rates by 0.25 percentage points, bringing them down to 4.25 percent.
Standard Chartered Bank Nepal announced 4 percent interest for personal deposits and 2.48 percent for institutional deposits, while Kumari Bank published 3.96 percent for personal deposits and 3.01 percent for institutional deposits.
Meanwhile, Citizens Bank International slightly lowered personal deposit interest to 4.10 percent, but raised institutional deposit rates by 0.5 percentage points to 3.50 percent.
In contrast to the broader trend, Siddhartha Bank marginally increased its personal deposit rate. The bank raised the rate from 4 percent in Baisakh to 4.05 percent in Jestha.
The latest adjustments suggest commercial banks continue to recalibrate deposit pricing amid excess liquidity and slower credit expansion in Nepal’s banking sector. Lower deposit rates could reduce funding costs for banks while also influencing lending rates and returns for savers in the coming months.
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