Base Rate of Commercial Banks Drops to 8.07 Percent
August 8, 2024 | Investopaper
What Is Base Rate In Banking?
Base rate refers to the minimum standard rate below which the commercial banks are not allowed to lend. In other words, the base rate is the cost of doing the banking business. Base Rate includes the cost of funds along with the operation costs for the business. Banks in Nepal provide loans at a certain premium above the base rate. Higher base rate results in higher lending rates. Hence, the low base rate is more favorable for the banks. Banks with lower base rate has a competitive edge over other banks.
Base Rate Of Banks In Nepal
As of the Ashad’s end 2081 BS, the average base rate of the commercial banks has reached 8.07 percent, which stood at 8.61 percent at the end of the third quarter. Among the 20 ‘A’ class banks, Standard Chartered Bank Nepal (SCB) has the lowest base rate of 6.60 percent. Following SCB, Rastriya Banijya Bank (RBB) and Everest Bank Limited (EBL) have the base rate of 6.71 percent and 7.29 percent respectively.
On the other hand, NIC Asia Bank (NICA) has the highest base rate of 9.19 percent. Similarly, Himalayan Bank (HBL) and Kumari Bank (KBL) have a base rate of 9.08 and 8.89 percent respectively.
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Net Profit of Commercial Banks in Nepal
Earnings Per Share (EPS) Of 20 Commercial Banks In Nepal
The table below presents the base rate of 20 commercial banks of Nepal as of end of Ashad, 2081 BS.
Base Rate Of Commercial Banks In Nepal [Ashad’s End, 2081 BS]
Base Rate (In %)
| Rank | Commercial Banks | Ashad’s End, 2081 BS | Chaitra’s End, 2080 BS | Poush’s End, 2080 BS | Ashwin’s End 2080 BS |
| 1 | Standard Chartered Bank Nepal Limited | 6.6 | 6.53 | 7.56 | 8.42 |
| 2 | Rastriya Banijya Bank Limited | 6.71 | 7.31 | 8.25 | 8.7 |
| 3 | Everest Bank Limited | 7.29 | 8.31 | 8.69 | 9.7 |
| 4 | Nabil Bank Limited | 7.63 | 8.36 | 9.07 | 9.58 |
| 5 | Nepal Investment Mega Bank Limited | 7.69 | 8.52 | 9.41 | 9.95 |
| 6 | Sanima Bank Limited | 7.83 | 8.35 | 9.29 | 9.75 |
| 7 | Nepal Bank Limited | 7.97 | 7.99 | 8.55 | 9.19 |
| 8 | Prabhu Bank Limited | 8.02 | 8.48 | 9.42 | 10.04 |
| 9 | Agricultural Development Bank Limited | 8.09 | 8.68 | 9.82 | 10.38 |
| 10 | Global IME Bank Limited | 8.09 | 8.84 | 9.6 | 10.07 |
| 11 | Siddhartha Bank Limited | 8.11 | 8.46 | 9.28 | 9.53 |
| 12 | Citizens Bank International Limited | 8.26 | 8.99 | 9.81 | 10.6 |
| 13 | Machhapuchchhre Bank Limited | 8.26 | 8.97 | 9.78 | 10.01 |
| 14 | Nepal SBI Bank Limited | 8.3 | 8.95 | 9.66 | 10.25 |
| 15 | NMB Bank Limited | 8.42 | 9.15 | 9.95 | 9.85 |
| 16 | Prime Commercial Bank Limited | 8.49 | 9.27 | 10.38 | 10.64 |
| 17 | Laxmi Sunrise Bank Limited | 8.52 | 9.12 | 9.99 | 10.8 |
| 18 | Kumari Bank Limited | 8.89 | 9.63 | 10.28 | 10.91 |
| 19 | Himalayan Bank Limited | 9.08 | 9.48 | 10.59 | 10.86 |
| 20 | NIC Asia Bank Limited | 9.19 | 8.86 | 9.68 | 10.56 |
| Average Base Rate | 8.07 | 8.61 | 9.45 | 9.99 |
Source: Unaudited Q4 Report Of Respective Banks, FY 2080/81
Base Rate Of Commercial Banks In Nepal [Ashad’s End, 2080 BS]
| Rank | Bank Name | Base rate (%) |
| 1 | Rastirya Banijya Bank | 7.79 |
| 2 | Standard Chartered Bank Nepal | 9.02 |
| 3 | Nepal Investment Mega Bank | 9.36 |
| 4 | Everest Bank | 9.47 |
| 5 | Nabil Bank | 9.52 |
| 6 | Siddhartha Bank | 9.91 |
| 7 | Nepal Bank | 9.92 |
| 8 | NIC Asia Bank | 9.98 |
| 9 | Agricultural Development Bank | 10.06 |
| 10 | Citizens Bank International | 10.09 |
| 11 | Sanima Bank | 10.15 |
| 12 | Prabhu Bank | 10.16 |
| 13 | Global IME Bank | 10.2 |
| 14 | NMB Bank | 10.37 |
| 15 | Prime Commercial Bank | 10.57 |
| 16 | Machhapuchchhre Bank | 10.74 |
| 17 | Nepal SBI Bank | 10.74 |
| 18 | Laxmi Sunrise Bank | 10.75 |
| 19 | Himalayan Bank | 10.86 |
| 20 | Kumari Bank | 10.9 |
| Average | 10.03 |
Source: Unaudited Q4 Report, FY 2079/80
Base Rate Of Commercial Banks In Nepal [Ashad’s End, 2079 BS]
| Rank | Commercial Banks | Base rate (%) |
| 1 | Rastriya Banijya Bank | 7.63 |
| 2 | Nepal Bank | 7.99 |
| 3 | Nepal Investment Bank | 8.59 |
| 4 | Nabil Bank | 8.77 |
| 5 | Standard Chartered Bank Nepal | 8.81 |
| 6 | Everest Bank | 8.82 |
| 7 | Agricultural Development Bank | 8.9 |
| 8 | NCC Bank | 9.2 |
| 9 | Prabhu Bank | 9.24 |
| 10 | NIC Asia Bank | 9.25 |
| 11 | NMB Bank | 9.38 |
| 12 | Global IME Bank | 9.4 |
| 13 | Siddhartha Bank | 9.45 |
| 14 | Nepal SBI Bank | 9.61 |
| 15 | Sanima Bank | 9.71 |
| 16 | Bank Of Kathmandu | 9.83 |
| 17 | Machhapuchchhre Bank | 9.86 |
| 18 | Himalayan Bank | 9.88 |
| 19 | Laxmi Bank | 9.99 |
| 20 | Prime Commercial Bank | 9.99 |
| 21 | Sunrise Bank | 10.01 |
| 22 | Mega Bank Nepal | 10.01 |
| 23 | Citizens Bank | 10.09 |
| 24 | Century Commercial Bank | 10.23 |
| 25 | Civil Bank | 10.46 |
| 26 | Kumari Bank | 10.57 |
| Average Base Rate (%) | 9.45 |
Source: Unaudited Q4 Report, FY 2078/79
Base Rate Of Commercial Banks In Nepal [FY 2077/78]
Base Rate (%)
| Rank | Commercial Banks | Ashad’s end, 2078 BS | Ashad’s end, 2077 BS |
| 1 | Rastriya Banijya Bank | 5.41 | 5.8 |
| 2 | Standard Chartered Bank | 5.51 | 7 |
| 3 | Nepal Bank | 5.73 | 6.99 |
| 4 | Nepal Investment Bank | 5.74 | 7.51 |
| 5 | Nabil Bank | 5.86 | 7.32 |
| 6 | Sanima Bank | 6.34 | 8.62 |
| 7 | Global IME Bank | 6.6 | 8.42 |
| 8 | Sunrise Bank | 6.7 | 8.95 |
| 9 | Himalayan Bank | 6.75 | 8.38 |
| 10 | NIC Asia Bank | 6.84 | 7.7 |
| 11 | Prabhu Bank | 6.88 | 8.32 |
| 12 | Everest Bank | 6.99 | 8.05 |
| 13 | Laxmi Bank | 7.08 | 9.23 |
| 14 | Agricultural Development Bank | 7.13 | 9.26 |
| 15 | Siddhartha Bank | 7.16 | 9.03 |
| 16 | Prime Commercial Bank | 7.21 | 8.62 |
| 17 | Machhapuchchhre Bank | 7.26 | 9.21 |
| 18 | NMB Bank | 7.33 | 8.95 |
| 19 | Nepal SBI Bank | 7.37 | 9.25 |
| 20 | Nepal Bangladesh Bank | 7.41 | 8.62 |
| 21 | Bank Of Kathmandu | 7.44 | 8.71 |
| 22 | Citizens Bank | 7.55 | 9.04 |
| 23 | NCC Bank | 7.57 | 9.03 |
| 24 | Mega Bank | 7.61 | 8.32 |
| 25 | Century Commercial Bank | 7.8 | 9.38 |
| 26 | Civil Bank | 7.83 | 9.84 |
| 27 | Kumari Bank | 7.9 | 10.08 |
| Average Base Rate Of Banks | 6.93 | 8.50 |
Source: Unaudited Q4 Report, FY 2077/78
Note: The Base Rate of commercial banks is taken from the unaudited quarterly report (of respective banks) of the fiscal year. Investors are advised to view other indicators along with this while making any investment decisions.
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