Commercial Banks Raise Interest Rates; Here's the Updated Interest Profile of Every Bank Compared to Previous Month's Rates
Thu, Sep 16, 2021 3:01 PM on Interest Rates, Latest,
Commercial Banks have updated the interest rates profile for the month of Ashwin. The update is effective from Ashwin 01.
It seems that commercial banks have raised the interest rates for the month, an effect likely caused by decreasing liquidity in the banking system. The interest rate hike is the highest seen after the pandemic so far.
Interest Rate and the Stock Market
While it is not a strict rule written in stone, the capital market and the interest rate of an economy have an inverse relationship. The performance of the NEPSE index in the recent past can be partly attributed to slashed interest rates, a move taken by banks to compensate for piling liquidity during the pandemic.
Investors are concerned as to what effect the interest rate hike will bring to NEPSE in the near future. While it is given that the change will surely affect the capital market, investors are more concerned about the scale of this effect, and whether it will have considerable implications on the market trend.
|
Company |
Bhadra Interest Rate Range on Savings (%) |
New Range in Ashoj |
|---|---|---|
|
Global IME Bank Limited |
2.01 to 4 |
4.5 |
|
Prime Commercial Bank Limited |
2.76 to 4.5 |
4.76 to 5.76 |
|
Sanima Bank Limited |
2.77 to 4.77 |
4.51 to 5 |
|
Nabil Bank Limited |
3.01 to 5.01 |
4.26 to 6.26 |
|
Civil Bank Limited |
4.05 to 6.05 |
4.25 to 6.25 |
|
Nepal Credit and Commerce Bank |
3.26 to 5 |
4.26 to 5 |
|
Agricultural Development Bank Limited |
3.5 to 5 |
3.5 to 5 |
|
Prabhu Bank Limited |
3.25 to 4 |
3.25 to 5 |
|
Himalayan Bank Limited |
2 to 4 |
4.15 to 6.15 |
|
Standard Chartered Bank Limited |
2 to 4 |
2.5 to 4 |
|
Rastriya Banijya Bank Limited |
3 to 5 |
3.06 to 6 |
|
NMB Bank Limited |
2.5 to 4.5 |
4.52 to 6.52 |
|
Nepal Bangladesh Bank Limited |
2.5 to 3.5 |
3.76 to 4.76 |
|
Century Commercial Bank Limited |
2.5 to 4.5 |
4.25 to 6.25 |
|
Everest Bank Limited |
2.5 to 4 |
3.61 to 4 |
|
Sunrise Bank Limited |
2.57 to 4 |
5.07 |
|
Nepal SBI Bank Limited |
2.55 to 3.16 |
3.55 |
|
Machhapuchchhre Bank Limited |
2.05 to 4 |
3.75 to 5 |
|
NIC Asia Bank Limited |
2.56 |
3.6 |
|
Siddhartha Bank Limited |
2.5 to 4 |
4.05 to 5.05 |
|
Laxmi Bank Limited |
2.5 to 4.5 |
4 to 6 |
|
Kumari Bank Limited |
2.5 to 3.5 |
3.15 to 5.15 |
|
Bank of Kathmandu Limited |
2.5 to 4 |
3.77 to 5.27 |
|
Nepal Investment Bank Limited |
2 to 4 |
4.02 |
|
Citizens Bank |
3 to 5 |
3 to 5 |
|
Mega Bank |
2.25 to 3.5 |
4.55 to 6.05 |
|
Nepal Bank Limited |
3.05 to 4.55 |
3.05 to 4.55 |
It is seen that the highest rate hike has been made on fixed deposits. This might be a reflection of commercial banks' incentive to collect longer-term capital to ensure greater flexibility in deposit mobilization.
NMB Bank Limited (NMB), Prime Commercial Bank Limited (PCBL), Sanima Bank Limited (SANIMA), and Sunrise Bank Limited (SRBL) have offered maximum interest rates i.e. above 9.5% on fixed deposits. Sunrise Bank is the only bank that has hiked the interest rate on FD higher than 10%.
|
Company |
Bhadra Interest Rate Range (Individuals) on FD |
New Range in Ashoj |
Bhadra Interest Rate Range (Institutions) on FD |
New Range in Ashoj |
|---|---|---|---|---|
|
Global IME Bank Limited |
6.8 to 7.01 |
8.8 to 9 |
NA |
upto 9.5 |
|
Prime Commercial Bank Limited |
7.5 to 7.76 |
8 to 9.25 |
7.76 |
9.5 to 9.76 |
|
Sanima Bank Limited |
5.77 to 7.27 |
7 to 10.01 |
7.77 |
9.51 |
|
Nabil Bank Limited |
5.51 to 7.51 |
6.51 to 8.76 |
6.01 to 8.01 |
7.51 to 9.26 |
|
Civil Bank Limited |
7.05 to 8.75 |
7.25 to 9.25 |
7.15 to 8.15 |
7.35 to 8.55 |
|
Nepal Credit and Commerce Bank |
7.75 to 8 |
8.75 to 9 |
upto 8.26 |
9.26 |
|
Agricultural Development Bank Limited |
6.5 to 7.75 |
6.5 to 7.75 |
6 to 7 |
6 to 7 |
|
Prabhu Bank Limited |
7.75 to 8.25 |
7.75 to 8.25 |
7.75 to 8.25 |
7.75 to 8.25 |
|
Himalayan Bank Limited |
5 to 7 |
5 to 8.5 |
6.5 to 7 |
7 to 8 |
|
Standard Chartered Bank Limited |
4.5 to 7 |
5 to 7 |
3 to 5.25 |
3 to 7 |
|
Rastriya Banijya Bank Limited |
6 to 7.25 |
6 to 9.06 |
6 to 6.5 |
6 to 8.06 |
|
NMB Bank Limited |
6.5 to 7.5 |
7.5 to 9.02 |
6.5 to 7.5 |
7.5 to 9.52 |
|
Nepal Bangladesh Bank Limited |
7.25 to 7.5 |
8.51 to 8.76 |
7.25 to 7.5 |
8.51 to 8.76 |
|
Century Commercial Bank Limited |
7 to 7.5 |
8 to 9.25 |
6.55 to 7.5 |
8 to 9.25 |
|
Everest Bank Limited |
6 to 7 |
7 to 8 |
6 to 7 |
6.5 to 8 |
|
Sunrise Bank Limited |
6.5 to 7 |
9.1 to 10.07 |
6.5 to 7 |
9 to 10.07 |
|
Nepal SBI Bank Limited |
3.01 to 7.55 |
4.05 to 8.55 |
3.01 to 7.55 |
4.05 to 8.55 |
|
Machhapuchchhre Bank Limited |
7.05 |
8.25 |
7.05 |
8.75 |
|
NIC Asia Bank Limited |
7.56 |
8.6 |
7.56 |
8.6 |
|
Siddhartha Bank Limited |
7 |
8.25 to 8.75 |
7 |
8.75 to 9.05 |
|
Laxmi Bank Limited |
7 to 7.5 |
8.5 |
6.5 to 7.5 |
8.5 |
|
Kumari Bank Limited |
6 to 7 |
8.15 |
6 to 7.5 |
8.15 |
|
Bank of Kathmandu Limited |
6.5 to 7 |
8.27 |
5 to 7 |
6.27 to 8.27 |
|
Nepal Investment Bank Limited |
5.75 to 7 |
7 to 8.5 |
7 |
8.5 |
|
Citizens Bank |
7 to 7.5 |
7.5 |
7.5 to 8 |
7.5 to 8 |
|
Mega Bank |
7.25 |
8 to 9.55 |
7.25 |
8 to 9.55 |
|
Nepal Bank Limited |
8.05 |
8.05 |
8.05 |
8.05 |
|
Company |
Previous Base Rate |
Latest BR |
Latest Interest Rate Spread |
|---|---|---|---|
|
Global IME Bank Limited |
6.4 |
6.6 |
NA |
|
Prime Commercial Bank Limited |
7.21 |
7.21 |
NA |
|
Sanima Bank Limited |
6.34 |
6.14 |
3.63 |
|
Nabil Bank Limited |
5.86 |
5.52 |
4.01 |
|
Civil Bank Limited |
7.83 |
7.89 |
2.62 |
|
Nepal Credit and Commerce Bank |
7.57 |
7.67 |
3.37 |
|
Agricultural Development Bank Limited |
7.13 |
7.13 |
4.37 |
|
Prabhu Bank Limited |
6.88 |
7.1 |
3.66 |
|
Himalayan Bank Limited |
6.75 |
6.55 |
3.42 |
|
Standard Chartered Bank Limited |
5.51 |
5.51 |
3.88 |
|
Rastriya Banijya Bank Limited |
5.41 |
5.41 |
4.36 |
|
NMB Bank Limited |
7.33 |
6.84 |
3.57 |
|
Nepal Bangladesh Bank Limited |
NA |
NA |
NA |
|
Century Commercial Bank Limited |
7.8 |
7.55 |
3.02 |
|
Everest Bank Limited |
5.99 |
5.85 |
3.16 |
|
Sunrise Bank Limited |
6.7 |
7.01 |
3.9 |
|
Nepal SBI Bank Limited |
7.37 |
7.37 |
3.3 |
|
Machhapuchchhre Bank Limited |
7.26 |
6.8 |
4.17 |
|
NIC Asia Bank Limited |
6.84 |
6.84 |
3.99 |
|
Siddhartha Bank Limited |
7.16 |
6.83 |
3.86 |
|
Laxmi Bank Limited |
7.08 |
6.97 |
3.63 |
|
Kumari Bank Limited |
7.9 |
7.65 |
3.04 |
|
Bank of Kathmandu Limited |
7.44 |
7.3 |
3.29 |
|
Nepal Investment Bank Limited |
5.54 |
5.71 |
3.25 |
|
Citizens Bank |
7.55 |
7.84 |
3.59 |
|
Mega Bank |
7.01 |
6.48 |
4.2 |
|
Nepal Bank Limited |
5.73 |
5.73 |
4.32 |
