Commercial Banks Revise Interest Rates For Shrawan After Interest Rate Cartelisation Ends

The Nepal Bankers' Association (NBA) had taken a significant step by deciding to eliminate the long-standing interest rate cartelisation that has prevailed for a considerable period.

MUST READ: Nepal Bankers' Association Ends Long-standing Interest Rate Cartelization, Allows Banks to Set Their Own Rates

Following the same, the commercial banks have revealed the updated interest rates for the month of Shrawan, 2080. 

NMB Bank Limited has set the highest interest rate for its maximum interest on general saving deposits among its saving products at 7.98 % per annum. On the contrary, Nepal SBI Bank has the lowest interest rate per annum at 6.4 % on general saving deposits.

In the new interest rate applicable from Shrawan 1, NMB Bank has the highest rate. The bank has said that it will give 10.98 percent interest on fixed deposits and 7.99 percent interest on institutional deposits.

Similarly, Standard Chartered Bank has the lowest rate of 8.95 percent. The bank gives 8.95 percent interest on individual term deposits and 6.95 percent interest on institutional deposits.

Prime Bank has set interest rates of 10.93 percent for individuals and 8.93 percent for institutional depositors, Nabil Bank 10.49 percent for individuals, 8.49 percent for institutions, and Kumari Bank 10.01 percent for individuals and 7.51 percent for institutions.

In the new interest rate announced to be effective from Shrawan, fifteen banks have a single-digit interest rate. In which 9.99 percent of Nepal Investment Mega Bank, 9.99 percent of personal and 7.99 percent of institutional of Global IME Bank, 9.99 percent of personal and 7.99 percent of Laxmi Sunrise Bank, 9.99 percent of personal and 7.99 percent of institutional of Nepal SBI Bank. And, Himalayan Bank is going to give 9.99 percent interest to individuals and 7.99 percent interest to institutions.

Similarly, Citizens Bank has 9.99 percent for individuals and 7.99 percent for institutions, Sanima Bank has 9.52 percent for individuals and 7.52 percent for institutions, Agricultural Development Bank has 9.51 percent for individuals and 7.51 percent for institutions, and Everest Bank has 9.5 percent for individuals and 7.5 percent for institutions.

Effective from Shrawan 1, Prabhu Bank will provide 9.5 percent for individuals and 7.5 percent for institutions, Siddharth Bank 9.5 percent for individuals and 7.5 percent for institutions, Machhapuchhre Bank 9 percent for individuals and 7 percent for institutions, Rastriya Banijya Bank 8.99 percent for individuals and 6.99 percent for institutional, and Nepal Bank will give 8.99 percent interest for individuals and 6.99 percent interest for institutions. The average interest rate of commercial banks in Shrawan is 9.72 percent.

*The 10.98 % per annum interest rate for fixed deposit of NMB Bank is for a tenure of 10 years. Meanwhile, the tenure for 2-10 years will be able to entertain 9.75% per annum interest rate. 

The earlier provision to fix the minimum tenure for six months replacing the prior limit of three months as decided and in effect since Baisakh (2080) has been suspended for fixed deposits. Now, the banks can fix the tenure for a minimum of three months as was in practice prior to Baisakh (2080).