Commercial banks not to hike interest rate on deposits

KATHMANDU, MARCH 14 :  Commercial banks have decided to keep the prevailing interest rate that was set last month intact.  A meeting of the Nepal Bankers’ Association (NBA) held on Friday in the capital agreed to maintain such rate on fixed deposits at a maximum of 12.03 percent from mid-March to mid-April.

Out of the total of 27 commercial banks operating in the country, 26 provides the interest rates of 11.03 percent and 10.3 percent on fixed deposits for individual and institutional depositors respectively. Only the Standard Chartered Bank Nepal (SCBN) offers the interest rates of 9.5 percent and 8.5 percent   for individual and institutional depositors respectively.

The stability in the interest rate of deposits will ward off the fluctuations in the lending rate also.  This is expected to largely benefit the borrowers.