Average Deposit Rates Decline Further in Ashwin 2083
Average fixed deposit rates at Nepal’s commercial banks declined further in Ashwin 2083 with Prabhu Bank offering the highest individual deposit rate at 4.55%.
Nepal’s 20 commercial banks have published their interest rates for Ashwin 2083, with average deposit rates declining further from Bhadra amid comfortable liquidity and subdued credit demand.
The average maximum interest rate on individual fixed deposits fell by 0.0465 percentage points to 4.0895% in Ashwin from 4.136% in Bhadra. Similarly, the average rate on institutional deposits declined by 0.0145 percentage points, from 3.081% to 3.0665%.
Among individual deposit rates, Prabhu Bank continues to offer the highest rate at 4.55%. Machhapuchchhre Bank, Nepal Investment Mega Bank, NMB Bank, and Sanima Bank follow with rates of 4.50%.
Everest Bank recorded the largest reduction in individual deposit rates, cutting its rate by 0.55 percentage points from 4.05% to 3.50%. Its institutional deposit rate also fell by 0.25 percentage points to 3.25%.
Nabil Bank reduced its individual deposit rate by 0.30 percentage points, from 4.55% to 4.25%, while its institutional rate remained unchanged at 3.01%.
Standard Chartered Bank Nepal lowered its individual deposit rate from 3.80% to 3.75%, while Kumari Bank reduced its rate from 3.76% to 3.73%. Kumari’s institutional rate remained at 3.01%.
Citizens Bank cut its institutional deposit rate by 0.25 percentage points, from 3.00% to 2.75%, while keeping its individual rate unchanged at 3.85%.
In contrast, Sanima Bank increased its institutional deposit rate by 0.21 percentage points, from 3.30% to 3.51%, while maintaining its individual deposit rate at 4.50%.
The remaining commercial banks largely maintained their individual fixed deposit rates for Ashwin. These include Agriculture Development Bank, Global IME Bank, Himalayan Bank, Laxmi Sunrise Bank, Machhapuchchhre Bank, Nepal Bank, Nepal Investment Mega Bank, Nepal SBI Bank, NIC Asia Bank, NMB Bank, Prabhu Bank, Prime Commercial Bank, Rastriya Banijya Bank, and Siddhartha Bank.
The continued decline in deposit rates comes as Nepal’s banking system maintains comfortable liquidity while demand for credit remains relatively subdued. With banks holding sufficient investable funds, there has been limited pressure to increase deposit costs.
Overall, the Ashwin rate structure shows that the downward movement has been concentrated among selected banks, while most institutions have opted to maintain their existing rates.