Kathmandu. Banks and financial institutions have reduced interest rates on deposits. According to the notification published by Banks and Financial Institutions today, banks have reduced the interest rates on deposits. The interest rate published by the banks is lower and higher depending on the time period.

Some banks have already reduced the interest rate of the loan and published it, while some have mentioned in the notification that it will be fixed on the basis of the base rate. According to Nepal Rastra Bank's arrangement for calculating the interest rate of old loans on a quarterly basis, the base rate remains the same, while the interest rate of new loans has been reduced.

According to the Bankers Association, the interest rate has been reduced to meet the market demand. "The loan-deposit ratio (CD ratio) has reached around 86 percent and the banks have the capacity to give loans of around 2 trillion," said the union. According to the theory of economics, interest rates will increase when demand is high and decrease when demand is low. The market has been directed accordingly. We have reduced the interest rate to balance the supply..

Kumari Bank's base rate for November is 11.19 percent. The interest rate of the loan is equal to 2 to 6 percent premium of the base rate. Kumari Bank has reduced the interest rate of long-term loans. The bank has mentioned that the interest rate for loans of 1 to 5 years is 13 percent, 5 to 10 years is 13.50 percent, and the interest rate for loans of more than 10 years is 13.75 percent.

Global IME Bank has also published reduced interest rates on deposits. The interest rate of savings account has been fixed from 6.42 to 8.42 percent, while the interest rate of term deposit and call account has been fixed up to 3.21 percent. .

The base rate of this bank in October is 10.19 percent. The notice mentions that the interest rate of most loans will be maintained by adding a premium of 2.50 to 6 percent to the base rate. The bank has fixed the interest rate from 11.99 to 14 percent in various loan products towards the fixed interest rate for a certain period.

Nepal Investment Mega Bank Limited has also published a new interest rate for Magh. The bank has maintained the interest rate of 11 percent for individual term deposits, 9 percent for institutional deposits and 12 percent for remittance accounts.

The interest rate for recurring fixed deposits has been fixed at 11 percent for 12 months and 10 percent for 33 months. The interest rate of savings account has been fixed from 6.42 percent to 8.42 percent. According to the bank, the interest rate of call accounts has been fixed at 3.21 percent. No change has been made in the loan interest rate by Investment Bank.

Himalayan Bank has also published reduced interest rates. 11 percent of individual term deposits and 9 percent of institutional deposits have been maintained. The bank's base rate for the second quarter has decreased to 10.43 percent. According to the bank, the interest rate of various loan products will be maintained by adding a premium of up to 6 percent to the base rate.

The interest rate of loans of fixed nature has been maintained at 14.65 to 15.75 percent.

Standard Chartered Bank's base rate for November is 9.30 percent. Because the bank determines the interest rate of various loan products by adding a premium of 2 to 5 percent to the base rate, it seems that the bank has a cheap interest rate when taking a loan.

This bank has maintained a fixed rate of 11.50 percent for loans up to 5 years, 12 percent for up to 7 years, 12.50 percent for up to 10 years and 13 percent for more than 10 years. Other commercial banks have also reduced the deposit interest rates as per prior agreement and published them.