Kathmandu: In the last 1 month, the average base rate of banks has decreased by 0.24 percentage points. Based on the 3-month average base rate announced by the banks, the average base rate of the banks in the month of October remained at 7.68 percent. In the month of August, the average base rate was fixed at 7.92 percent.

Compared to August, the base rate of all 20 commercial banks has decreased in October. With the situation of more liquidity, banks have been gradually reducing the interest rate on deposits. Along with the decrease in interest rate of deposits, the base rate of banks is also decreasing.

According to the data of the Central Bank, now there are deposits of 65 trillion 52 billion rupees in banks and financial institutions. During this period, 52 trillion 40 billion rupees of loans have been disbursed. The CD ratio is 78.58 percent. Interbank interest rate is 3 percent. This shows that banks and financial institutions are now in a comfortable position to give loans.

Standard Chartered Bank has the lowest base rate for October. Its base rate is 7.03 percent. Similarly, the base rate of National Commercial Bank has been fixed at 6.37 percent. NIC Asia Bank has the highest base rate. Its base rate is 8.88 percent.