Kathmandu. Commercial banks have reduced the base rate in the last fiscal year 2077/78. The 27 operating commercial banks have declined by 1.61 percent compared to the previous year.

The base rate of these banks was 8.50 percent in mid-July of FY 2076/77. It has come down to 6.89 percent by mid-July 2077/78. Banks have been setting their interest rates by adding a few percent to the base rate.

The monetary policy for the current fiscal year has mentioned that the right to add premium to the base rate will be given to the banks

It is seen that the cheapest government loan is in the government-owned Rastriya Banijya Bank. The base rate of Rastriya Banijya Bank has been 5.41 percent till mid-July. Last year, the base rate of the bank was 5.80 percent.

Standard Chartered Bank is the second lowest base rate, followed by Nepal Bank, the country's oldest bank. Standard Chartered Bank has reduced its base rate from 7.70 percent last year to 5.51 percent.

The base rate of Nepal Bank, which is ranked third, has dropped from 6.99 percent to 5.73 percent. Nepal Investment Bank, which is ranked fourth, has managed to reduce the base rate from 7.51 percent to 5.74 percent.

The number one Nabil Bank in terms of profits has also improved the base rate. Nabil has dropped the base rate to 5.86 from 7.32 percent in mid-July last year.