BFI's update interest rates: Base Rates Falling; Slashed interest on call deposits

Agricultural Development Bank Limited has updated its interest rate profile effective from Ashwin 01.

The interest rates on savings and fixed deposits haven't changed. However, the base rate has been reduced to 8.95% from the previous 9.26%. Thus, margin lending rates have also decreased by the same difference, given that it is provided at a 5% higher rate than the base rate of a given period.

Pertaining to the unified directive for banks and financial institutions forwarded by Nepal Rastra Bank, the interest rate for call deposits has been brought down to 1.5% from the previous 2%. This is because the directive requires BFIs to only have up to 50% of the minimum savings interest rate as the interest for call deposits.

Similarly, Guheswori Merchant Banking & Finance has also reduced the baser rate to 10.07% from the previous 10.62%. It provides loans of all kinds at a 6% higher interest than the base rate of any given time.

Meanwhile, the interest rates for fixed deposits have been retained as it is.

In the same way, Sindhu Bikas Bank's base rate has also been reduced to 9.98% from the previous 10.26%. While the interest rates are the same for savings and fixed deposits, its call deposits interest rate has also decreased. The maximum interest rate for call deposits is now 2.25% compared to the previous 4.5%. The interest rate for savings is in the range of 4.5% to 5.5%.