Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Commercial banks in Nepal have once again revised interest rates downward on fixed deposits for the month of Shrawan 2082 (starting July 16, 2025). As per the new rate structure effective from today, most banks have reduced deposit rates for both individual and institutional clients, signaling a continued easing in the overall interest rate environment.
According to the updated data, the average fixed deposit rate for individuals has dropped by 0.26 percentage points to 5.7%, while institutional fixed deposit rates declined by the same margin to 4.11%.
This consistent drop in deposit rates is also expected to automatically lower lending interest rates, offering potential relief to borrowers amid slow credit demand and surplus liquidity in the banking system.
Banks That Cut Interest Rates: Several major commercial banks have revised their rates down:
Agricultural Development Bank:
Individual: down by 0.05% to 5.40%
Institutional: down by 0.95% to 3.50%
Nepal Bank:
Institutional: down by 0.25% to 3.75%
Kumari Bank:
Individual: down by 0.10% to 5.61%
Institutional: down by 0.40% to 4.01%
Nepal SBI Bank:
Individual: down by 0.15% to 5.35%
Institutional: down to 4.35%
Laxmi Sunrise Bank:
Individual: down by 0.25% to 5.50%
Institutional: unchanged from last month
Other banks that have reduced deposit rates include:
Prime Commercial Bank
Citizens Bank
Prabhu Bank
Nabil Bank
Sanima Bank
Rastriya Banijya Bank
Nepal Investment Mega Bank
NIC Asia Bank
Banks That Maintained Rates: The following banks kept their deposit rates unchanged from Ashar:
Global IME Bank
Machhapuchchhre Bank
NMB Bank
Siddhartha Bank
Banks That Raised Interest Rates: In contrast, a few banks have moved against the trend by increasing deposit rates:
Himalayan Bank:
Individual: up by 0.50% to 6.00%
Institutional: up by 1.00% to 5.00%
(Previously: 5.5% and 4.0% respectively)
Standard Chartered Bank Nepal:
Individual: up slightly by 0.01% to 6.26%
Institutional: no change from previous month
Outlook and Implications:
The consistent decline in deposit rates across most banks reflects excess liquidity in the market, subdued credit demand, and cautious optimism in the financial sector. As lending rates follow deposit rates, businesses and borrowers could benefit from cheaper access to credit, which may help stimulate economic activity.
However, the variation among banks – with some opting to increase rates – indicates a divergent liquidity position and bank-specific strategy in attracting depositors.
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