Interest on loans fall by 11 percent and interest on treasury bills by 69 percent

Feb Thu 2024 02:00:51

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Interest on loans fall by 11 percent and interest on treasury bills by 69 percent

Kathmandu. In the 6 months of the current financial year, bank interest has decreased. According to the data published by Nepal Rastra Bank, the weighted average interest rate of 91-day treasury bills for 6 months of the current year was 10.89 percent, while it was 3.37 percent in December 2080. According to Rashtra Bank, the weighted average interest rate of treasury bills has decreased by 69 percent.

Similarly, the weighted average interest rate of interbank transactions between banks and financial institutions was 7.53 percent in December 2079, while it was 2.86 percent in December 2080. The weighted average interest rate of inter-bank transactions has decreased by 60 percent.

As of January of the current year, the average base rate of commercial banks is 9.35 percent, that of development banks is 11.49 percent, and that of finance companies is 12.77 percent. In December last year, the average base rate of commercial banks was 10.91 percent. The base rate of banks has decreased by 14.29 percent.

Similarly, the data of the National Bank shows that the interest rate of bank deposits has also decreased by 14 percent. In December 2080, the weighted average interest rate of commercial banks' deposits was 7.32 percent, development banks' 8.55 percent and finance companies' 9.62 percent. In December 2079, the weighted average interest rate of commercial banks' deposits was 8.51 percent. It seems that the income of those who earn from interest by keeping deposits in the bank is also decreasing.

Similarly, the weighted average interest rate of loans in 2080 was 11.38 percent of commercial banks, 13.14 percent of development banks and 14.09 percent of finance companies. In December 2079, the weighted average interest rate of commercial banks' loans remained at 12.79 percent. According to Rashtra Bank, the interest rate of loans has decreased by an average of 11 percent.

During the review period, deposits in banks and financial institutions have increased by 3.777 billion rupees (6.6 percent). During the same period of the previous year, such deposits increased by 2 trillion 15 billion 14 crore rupees (4.2 percent). On an annual point basis, deposits in banks and financial institutions increased by 14.9 percent at the end of December 2080.

Similarly, during this period, loans from banks and financial institutions to the private sector increased by 1 trillion 92 billion 64 billion rupees (4.0 percent). In the same period of the previous year, such loans increased by 1 trillion 37 billion 33 crore rupees (3.0 percent). On an annual point basis, at the end of December 2080, loans from banks and financial institutions to the private sector increased by 4.9 percent.

Similarly, in the 6 months of the financial year 2080/81, there was a total of 25 trillion 74 billion 20 billion inter-bank transactions of 23 trillion 16 billion 98 billion of commercial banks and 2 trillion 57 billion 22 billion of other financial institutions (except between commercial banks).