Commercial Banks Start Unveiling Interest Rates for Kartik; Finance Companies Raise Interest Rates on Fixed Deposits

Commercial Banks have unveiled the interest rates for the month of Kartik.

Commercial Banks had raised the interest rates for the month of Ashwin, an effect believed to have been caused by decreasing liquidity in the banking system. The interest rate hike was the highest seen after the pandemic. However, banks have unveiled their new interest rates profile today.

Of the five commercial banks that have unveiled their new interest rates profile, only Sanima Bank has lowered its interest rate range on savings. While the bank previously gave 4.51% to 5% on savings, it now gives interest payment from 3.51% to 4% p.a. Prabhu Bank has retained its previous range and the other three banks have raised their interest rate range on savings.

On the other side, the five commercial banks have also unveiled a change in their interest rate profile on fixed deposits, except Prabhu Bank Limited and Nepal Bank Limited that have retained their previous range. Sanima Bank Limited and Rastriya Banijya Bank Limited have lowered their interest rate range on FDs. In contrast, Agricultural Development Bank Limited has raised its interest rate range on FDs.

Meanwhile, a handful of Finance companies have also unveiled their interest rates profile for the month of Kartik. All Finance companies that have unveiled their profile today have decided to raise the interest rates on savings schemes. All of them now give more than 10% interest rate p.a. on fixed deposits.