Banks and Financial Institutions Have Lowered the Interest Rates for the Month of Magh; What Has Changed?

Banks have unveiled their interest rates profile for the month of Magh. Bank fixed deposit interest rates till the month of Poush were 12.133 percent for individuals and 10.133 percent for institutions.  The same interest rates have been fixed until the month of poush and after four months the interest rates have finally changed.

The banks have lowered the interest rate on fixed deposits to 11% for individuals and 9% interest rates for institutions. The rate for Remittance Fixed Deposits is 12%. 

By lowering the interest rate on deposits, banks will be able to operate at lower costs and lower their base rate. As a result, starting with the following quarter, the loan interest rate will also reduce.

Updated List of Savings and Fixed Deposits Interest Rates of Commercial Banks:

Note:

-In the month of Poush, the integrated transactions of Global IME and Bank of Kathmandu started in the name of Global IME Bank. Likewise, Kumari Bank and Nepal Credit and Commerce Bank Limited joint transactions have started in the name of 'Kumari Bank Limited'. In the same vein, Nepal Investment and Mega Bank started an integrated transactions in the name of 'Nepal Investment Mega Bank Limited' and 'Century Commercial Bank' acquisition by Prabhu Bank was also completed.

-Though the acquisition process of Civil Bank by Himalayan Bank has been completed, the joint transaction is yet to begin. Hence, the companies have published separate interest rates for the month of Magh. 

-Also, Laxmi Bank and Sunrise Bank signed an MoU to merge in the month of Poush. 

Development Banks:

Development Banks also decreased the interest rates on deposits in Magh compared to the previous months.

Development banks have decreased the interest rates for individual depositors on fixed deposits to 12% and the same for institutional is 10%. Most Development banks such as Mahalaxmi, Kamana Sewa, Lumbini, Shangrila, Muktinath, and Jyoti Bikas Bank are providing such interest rates.

On the other hand, Banks such as Karnali Development, Narayani Development, Excel Development, Corporate Development, and Sindhu Bikas Bank are providing fixed deposit interest rates higher than 12%, which usually range from 12.21%-12.50%.

While most of the development banks are providing saving interest rates of 7-9%, a few banks such as Sindu Bikas Bank, Narayani Development, and Karnali Development Banks are providing higher saving interest of up to 9.50%.  (Note: Such saving rates higher than 7% are mainly dependent upon the type of schemes the banks are providing).

For Finance Companies:

Finance Companies had also decreased the interest rates on deposits in Magh. The interest rate for individuals on fixed deposits has decreased to 12.10% from 13.10%. This rate is 10.10% for institutional depositors.

The average savings rates for most finance companies are 8.50%, whereas Nepal Finance Limited is providing a savings rate of 8.35%-9.50%, Best Finance – is 8.47%-10%, and Reliance Finance has also offered to provide interest up to 8%-9.85%.