Kathmandu. Most of the commercial banks have reduced the deposit interest rates for the month of November. Banks have reduced the interest rate of deposits as the banking system has accumulated enough investable funds (liquidity) and the demand for loans has not increased.

For November, 13 out of 20 commercial banks have reduced the deposit interest rate, while 6 banks have kept the same interest rate. In November, Prime Commercial, Kumari, Lakshmi Sunrise, Siddharth, Nepal and Citizens stated that the interest rate remained the same as in November. Only Machhapuchhre Bank has increased the deposit interest rate in November. All other banks have reduced it.

Compared to November, commercial banks have reduced the interest rate by 0.332 percentage point towards individual deposits and 0.307 percentage points towards institutional deposits in November. The average interest rate of individual term was 9.964 percent in October, but it decreased to 9.633 percent in December.

In December, the deposit interest rate among commercial banks has varied up to 1.635 percent. The maximum interest rate is 10.603 percent and the minimum interest rate is 8.968 percent. This is the second month in a row that most commercial banks have reduced interest rates. In October too, 14 out of 20 commercial banks reduced interest rates.

New interest rate of commercial Banks of Nepal ?

NIC Asia Bank has reduced the interest rate of most deposits in November. NIC has reduced the interest rate by 2.035 percentage points in November compared to October. The personal term interest rate of the bank which was 11.003 percent in October was reduced to 8.968 percent in November.

NMB Bank has also reduced the interest rate by more than 1 percentage point. The personal term interest rate of NMB which was 11.003 percent in October was reduced to 9.76 percent in November.

In December, 3 banks are going to give the highest interest rate of 10.603 percent. Himalayan, Nepal SBI and Machhapuchhre will give 10.603 percent interest rate for individual term. Similarly, Prime Commercial, Lakshmi Sunrise and Kumari Bank will give 10 percent more interest rate.

In November, the lowest deposit interest rate is of NIC Asia Bank Chartered. It will give an interest rate of 8.968 percent for individual term. Standard Chartered 8.97 percent, Sanima, Prabhu, Everest and Rashtriya Commercial Bank will give 9 percent interest rate.

Nabil, Nepal Investment Mega, Krishi Bikas, Global IME, NMB, Citizens and Siddharth Bank are going to give interest between 9 to 10 percent.