October 22, 2021 | Investopaper
Commercial banks have reduced the maximum interest rate on term (fixed) deposits to single digit. After the intervention of Nepal Rastra Bank, the interest rates issued by the banks for the month of Karthik have been revised.
As per the revised interest rate, commercial banks will now pay a maximum of 9.36 percent interest on individual term deposits. Similarly, development banks have fixed maximum interest rate of 9.50 percent and finance companies 9.60 percent.
NRB was forced to intervene after the banks raised the interest rate to above 11 percent on both individual and institutional fixed deposits. NRB has made a provision not to change the interest rate more than 10 percent as compared to the previous month as unhealthy competition has intensified in the interest rate hike.
Similarly, provision has been made to reduce the interest rate on institutional fixed deposit by 1 percent less than individual fixed deposit.
The table below presents the interest rate in fixed deposits offered by the commercial banks in Nepal
Fixed Deposit Interest Rate In Commercial Banks Of Nepal
|S.No.||Bank Name||Interest Rate In Individual Fixed Deposits (%)||Interest Rate In Institutional Fixed Deposits (%)|
|1||Bank of Kathmandu Ltd.||9.36||8.36|
|2||Century Commercial Bank Ltd.||9.36||8.36|
|3||Civil Bank Ltd.||9.36||8.36|
|4||Everest Bank Ltd.||9.36||8.36|
|5||Global IME Bank Ltd.||9.36||8.36|
|6||Himalayan Bank Ltd.||9.36||8.36|
|7||Kumari Bank Ltd.||9.36||8.36|
|8||Mega Bank Nepal Ltd.||9.36||8.36|
|9||Nabil Bank Ltd.||9.36||8.36|
|10||Nepal Bangladesh Bank Ltd.||9.36||8.36|
|11||Nepal Credit and Commerce Bank Ltd.||9.36||8.36|
|12||NIC Asia Bank Ltd.||9.36||8.36|
|13||NMB Bank Ltd.||9.36||8.36|
|14||Prime Commercial Bank Ltd.||9.36||8.36|
|15||Siddhartha Bank Ltd.||9.36||8.36|
|16||Laxmi Bank Ltd.||9.35||8.35|
|17||Nepal Investment Bank Ltd.||9.35||8.35|
|18||Machhapuchchhre Bank Ltd.||9.12||8.12|
|19||Sanima Bank Ltd.||9.06||8.06|
|20||Sunrise Bank Ltd.||9.06||8.06|
|21||Agriculture Development Bank Ltd.||8.85||7.85|
|22||Citizens Bank International Ltd.||8.8||7.8|
|23||Nepal SBI Bank Ltd.||8.8||7.8|
|24||Prabhu Bank Ltd.||8.57||7.57|
|25||Nepal Bank Ltd.||8.36||7.36|
|26||Rastriya Banijya Bank Ltd.||8.36||7.36|
|27||Standard Chartered Bank Nepal Ltd.||7.75||6.75|
Note: The interest rates are based on the notice published by the respective banks. The rates are effective from Karthik 5, 2078 BS. At present, the interest rate may vary.