Interest Rate Shuffle: Development Banks and Finance Companies Adjust Rates for Poush

In response to the recent monetary policy review for the first quarter of fiscal year 80/81 by the Nepal Rastra Bank (NRB), several financial institutions have made adjustments to their interest rates, effective from today, the 1st of Poush.

Among Development Banks, Lumbini Bikas Bank Limited has implemented the most significant reduction in its Fixed Deposit (FD) rates, lowering them by 1.60% from the previous month. The new rates for Individual FD now stand at 9%, while Institutional FD rates are also set at 7%. In contrast, Kamana Sewa Bikas Bank Limited (KSBBL) and Shangrila Development Bank Limited (SADBL) have increased their FD interest rates by 0.20% and 0.75%, respectively. Meanwhile, Mahalaxmi Bikas Bank and Karnali Development Bank have maintained their FD rates unchanged.

In the realm of finance companies, almost all have reported reductions in their FD rates for the month of Poush. Gurkhas Finance Limited (GUFL) and Guheswori Merchant Banking & Finance Limited (GMFIL) have implemented the most significant reduction, decreasing FD rates by 1%. GUFL's new Individual FD rates are now at 10%, and Institutional FD rates are set at 8%. GMFIL's FD rates stand at 9.75% for Individuals and 7.75% for Institutional FD rates.