Base Rate of Commercial Banks Drops to 8.61 Percent

April 23, 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 Chaitra’s end 2080 BS, the average base rate of the commercial banks has reached 8.61 percent, which stood at 9.45 percent at the end of the second quarter. Among the 20 ‘A’ class banks, Standard Chartered Bank Nepal (SCB) has the lowest base rate of 6.53 percent. Following SCB, Rastriya Banijya Bank (RBB) and Nepal Bank Limited (NBL) have the base rate of 7.31 percent and 7.99 percent respectively.

On the other hand, Kumari Bank (KBL) has the highest base rate of 9.63 percent. Similarly, Himalayan Bank (HBL)  and Prime Commercial Bank (PCBL) have a base rate of 9.48 and 9.27 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 Chaitra, 2080 BS.

Base Rate Of Commercial Banks In Nepal [Chaitra’s End, 2080 BS]

Base Rate (In %)

Rank Commercial Banks Chaitra’s End, 2080 BS Poush’s End, 2080 BS Ashwin’s End 2080 BS
1 Standard Chartered Bank Nepal Limited 6.53 7.56 8.42
2 Rastriya Banijya Bank Limited 7.31 8.25 8.7
3 Nepal Bank Limited 7.99 8.55 9.19
4 Everest Bank Limited 8.31 8.69 9.7
5 Sanima Bank Limited 8.35 9.29 9.75
6 Nabil Bank Limited 8.36 9.07 9.58
7 Siddhartha Bank Limited 8.46 9.28 9.53
8 Prabhu Bank Limited 8.48 9.42 10.04
9 Nepal Investment Mega Bank Limited 8.52 9.41 9.95
10 Agricultural Development Bank Limited 8.68 9.82 10.38
11 Global IME Bank Limited 8.84 9.6 10.07
12 NIC Asia Bank Limited 8.86 9.68 10.56
13 Nepal SBI Bank Limited 8.95 9.66 10.25
14 Machhapuchchhre Bank Limited 8.97 9.78 10.01
15 Citizens Bank International Limited 8.99 9.81 10.6
16 Laxmi Sunrise Bank Limited 9.12 9.99 10.8
17 NMB Bank Limited 9.15 9.95 9.85
18 Prime Commercial Bank Limited 9.27 10.38 10.64
19 Himalayan Bank Limited 9.48 10.59 10.86
20 Kumari Bank Limited 9.63 10.28 10.91
Average Base Rate 8.61 9.45 9.99

Source: Unaudited Q3 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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