Kathmandu. The meeting of Nepal Bankers Association, the umbrella organization of banks, has decided to reduce interest rates for the coming month of Baisakh. The meeting decided to reduce the interest rate by 1.01 percentage points. Now the deposit interest rate is going to drop to single digits. At present, commercial banks will maintain 9.99 percent interest rate on personal term deposits and 7.99 percent interest rate on institutional deposits.

The interest rate on fixed deposits has been reduced from 11 percent to 9.9 percent. Now the interest rate of institutional term deposits is 7.99 percent, and the interest rate of savings is 5.4 to 7.4 percent.

In Baisakh, the banks fixed the interest rate of 9.99 percent on term deposits of individuals and 7.99 percent on term deposits of institutions. Similarly, the minimum interest rate will be determined from 5.40 percent to 7.40 percent in the ordinary savings account.

Earlier, the interest rate reached double digits in 20 months i.e. October 2078. 20 months ago, the interest rate reached around 10 percent when the pressure on liquidity started.

The Chief Executive Officer (CEO) of Everest Bank said that due to the high interest rate of the bank, there was a break in the loan expansion and the deposits had to be reduced. He said that until recently, liquidity in the banks was easy, but credit was not expanded. "Liquidity has become easy, the CD ratio is also comfortable, even if one bank is above the bottom, it is usually easy, the interest rate will be driven by the market, now because it is easy, the interest rate has decreased, it may increase again when it is tight again,"