Commercial Banks Alter Interest Rates for Chaitra: Majority Lower Rates, NIC Asia Bucks Trend with Increase

Twenty commercial banks have recently disclosed their updated interest rates for the month of Chaitra. According to the released information, a majority of 17 commercial banks have opted to decrease their interest rates, while NIC Asia Bank (NICA) has taken the contrary route, choosing to raise its rates. Interestingly, two banks have decided to maintain consistency in their interest rates for the Chaitra month.

NIC Asia Bank has emerged with the highest fixed deposit (FD) rate of 8.54 percent on individual fixed deposits for the month of Chaitra, showcasing a notable increase from its 8 percent interest rate in the preceding month of Falgun. Simultaneously, the average interest rate for institutional fixed deposits has experienced an uptick from 6 percent to 7.54 percent in the same period.

A comparative analysis between Chaitra and Falgun reveals that Everest Bank and NMB Bank have taken the lead in reducing FD rates across all banks. These two financial institutions have successfully decreased the maximum interest rate on individual fixed deposits by 1.5 percent while also implementing a 0.5 percent reduction in the maximum interest rate on institutional fixed deposits.

When it comes to individual fixed deposits, Prabhu Bank and Global IME Bank have remained steadfast, maintaining a consistent interest rate of 7.5 percent and 7.6 percent, respectively, in both Chaitra and Falgun. However, in the realm of institutional fixed deposits, these banks have opted for an increment, witnessing a 1 percent rise in the maximum interest rate. Meanwhile, the Agricultural Development Bank stands out with the lowest interest rates, offering a maximum of 5.661 percent on individual fixed deposits and 4.01 percent on institutional fixed deposits.