Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Nepal’s commercial banks have once again reduced fixed deposit interest rates for the month of Mangsir (starting November 17, 2025), signaling continued stability in liquidity and subdued credit demand across the banking sector. The new rates, implemented from Mangsir 1, show a third consecutive month of downward adjustments, directly affecting both retail savers and institutional depositors.
According to the published interest rate sheets, the average fixed deposit rate for individuals has dropped by 0.17 percentage points, sliding to 5.03%, compared to 5.20% in Kartik.Institutional fixed deposit rates have also fallen, with the average slipping by 0.10 percentage points to 3.58%, down from 3.68% in Kartik.
Bankers say the trend reflects comfortable liquidity conditions, improved deposit inflows, low credit growth, and an ongoing push by the Nepal Rastra Bank to stabilize interest rate volatility. Analysts believe this softening in deposit rates is likely to gradually influence lending rates as well, improving borrowing conditions for businesses and industries amid a sluggish economy.
11 Banks Reduced Interest Rates for Mangsir
A total of 11 commercial banks have revised their fixed deposit rates downward. These include:
Agriculture Development Bank
Kumari Bank
Nepal SBI Bank
Prime Commercial Bank
Citizens Bank International
Standard Chartered Bank Nepal
Himalayan Bank
Siddhartha Bank
Nabil Bank
Sanima Bank
NIC Asia Bank
These banks have reduced interest rates across individual and/or institutional fixed deposits, marking one of the sharpest collective adjustments in recent months.
9 Banks Kept Rates Unchanged
Meanwhile, nine banks chose to keep their fixed deposit rates unchanged for Mangsir, signalling a more conservative approach based on internal liquidity and credit positions. These include:
Everest Bank
Nepal Bank
Laxmi Sunrise Bank
Global IME Bank
Prabhu Bank
Machhapuchchhre Bank
NMB Bank
Rastriya Banijya Bank (RBB)
Nepal Investment Mega Bank (NIMB)
Among them, NIMB has kept retail deposit rates unchanged but lowered the institutional fixed deposit rate.
With Nepal’s banking sector navigating through slower private-sector credit demand, rising deposit volumes, and reduced government spending, industry observers say declining deposit rates will reshape the investment landscape, retail savings strategies, and liquidity distribution across the economy.This development is significant for sectors like SMEs, hydropower, real estate, fintech, manufacturing, tourism, and import-based businesses, which closely track interest trends to plan their financial strategies.
The rate cuts also come at a time when the country is focusing on improving financial stability, digital banking penetration, capital market performance, and economic recovery—key areas that international investors and Nepal-focused business communities are monitoring closely.
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