NABIL Bank and Rastriya Banijaya Bank update new interest rates effective from Shrawan 1
Tue, Jul 14, 2020 11:29 AM on Interest Rates, Latest,
NABIL Bank and Rastriya Banijaya Bank have updated their interest rates structure. This was unveiled in separate notices issued by both the banks today.
Both of their changes will be effective from Shrawan 1.
This is a day after the Bankers' Association, which has been agreeing on interest rates on deposits for the past two years, left the responsibility of setting interest rates to the banks.
This was decided in the discussions held between the chief executive officers and representatives of all the 27 commercial banks today.
According to the new notice, Rastriya Banijya Bank has decreased its base rate to 6.07%. The base rate was established at 6.25% previously.
On the other hand, NABIL bank has retained its previous base rate of 7.36% without any change. Nevertheless, it has reduced the interest paid on fixed deposits of three months or longer.
NABIL bank will now pay 7.25% interest p.a. for personal fixed deposits and 6.5% p.a. for institutional deposits. Interest rates for personal and institutional fixed deposits were previously maintained at 8.50% p.a. and 7% p.a. respectively.
The Bankers' Association has left it to the banks to reduce interest rates without hurting the general depositors because the banks said that it was difficult to meet costs because of excess liquidity in the banking system.
When asked whether this will create an unhealthy competition to slash interest rates among banks, Nabil CEO Anil Shah says, "I like to believe banks should not engage in the dirty game of snatching customers from each other."
"This is a temporary situation and it won't last past the first quarter in my opinion," Shah says.
