Kathmandu. Commercial banks have increased interest rates on both deposits and loans with effect from September 20. Commercial banks have also raised interest rates on ordinary savings, term deposits and loans.

Commercial banks have hiked interest rates on time deposits from 0.5 percent to 3 percent and announced double-digit interest rates (up to 10 percent). All the 24 commercial banks have raised interest rates on time, surpassing the existing development banks and finance companies.

The existing development banks are paying interest on term deposits ranging from 6 percent to 11.25 percent. Also, finance companies are offering interest rates ranging from 7.50 percent to 9.50 percent.

According to the new interest rate, Sunrise Bank has announced an interest rate of 10.07 percent on personal term deposits for a period of more than one year. Similarly, Global IME Bank has fixed the interest rate at 10.5 percent and Sanima Bank has fixed the interest rate at 10.01 percent.

Some banks, including Standard Chartered, Nepal SVI and Himalayan Bank, have not made much change in interest rates. Besides, all other banks have raised interest rates. Commercial banks have raised interest rates by an average of 1-2 percent compared to August.

Other banks have set interest rates at an average of 8 to 9.5 percent. As announced in the monetary policy, banks have raised interest rates on both ordinary and term deposits for savings through remittances by 1 percent.

On time deposits, Rastriya Banijya Bank has increased the interest rate from 7.25 per cent to 9.06 per cent, Prime Bank from 7.76 per cent to 9.76 per cent, NMB Bank from 7.50 per cent to 9.52 per cent and Sanima Bank from 6.85 per cent to 9.51 per cent.

Nabil Bank from 7.51 per cent to 9.26 per cent, NCC Bank from 8 per cent to 9.26 per cent, Global IME from 7.1 per cent to 9.50 per cent, Civil Bank from 8.78 per cent to 9.25 per cent and Century Bank from 7.50 per cent. 9.25 percent.

Similarly, Nepal Bangladesh Bank has fixed the interest rate from 7.50 percent to 8.76 percent and Siddhartha Bank from 7 percent to 9.02 percent. In addition, Everest Bank has increased the maximum interest rate on time deposits from 7 percent to 8.61 percent, Agriculture Development Bank from 7.50 percent to 8.60 percent, Machhapuchhre Bank from 7.05 percent to 8.75 percent, and Nepal SBI Bank from 7.55 percent to 8.55 percent. Is

Similarly, Nepal Investment Bank has increased the interest rate from 7 percent to 8.50 percent, Bank of Kathmandu from 7 percent to 8.27 percent, Himalayan Bank from 7 percent to 8.50 percent and Laxmi Bank from 7 percent to 8.50 percent.

 In addition, Kumari Bank has increased the interest rate on term deposits from 7.65 percent to 8.15 percent and Prabhu Bank from 7.75 percent to 8.25 percent.