1 October, Kathmandu. The new interest rate has been implemented on deposits from today. Banks have announced new interest rates for the month of November. Most of the banks that have taken interest rates public have raised their rates.
Bank interest rates have risen sharply in the last three years. Nepal Bankers Association President Bhuvan Dahal confirmed that the current interest rate is the highest in the last three years. In December 2012, banks had aggressively increased interest rates due to liquidity crunch.
The CEO had agreed to keep the interest rate in single digits after banks increased interest rates drastically. The interest rate applicable today is the highest since then.
Half a dozen banks have announced higher interest rates for November. Sunrise Bank, which announced the most expensive interest rate last month, has exercised restraint.
Last month, Sunrise had offered a maximum interest rate of 10.07 per cent on fixed deposits. It was the most expensive bank at that time. But now Sunrise Bank has reduced the interest rate to 9 percent.
Along with Sunrise Bank, Sanima Bank has also cut interest rates. The interest rate of Prabhu Bank remains stable. While some banks, including Sunrise, have slackened interest rates, some banks, including Himalayan and NIC Asia, have increased interest rates aggressively.
It said that up to 11.66 percent will be given in Himalayan Bank’s deposits. It is the largest of the banks. Meanwhile, NIC Asia Bank, which has been aggressive in lending, has also announced higher interest rates on deposits.
NIC Asia has said that it will offer an interest rate of up to 11.10 per cent. This is the most expensive interest rate after Himalayan. Similarly, Nepal Credit and Commerce (NCC) Bank has announced an interest rate of 10.55 percent, Kumari Bank 10.31 percent and Lakshmi Bank 10.05 percent.
The interest rate on deposits is the interest rate paid by the bank. But as interest rates on deposits rise, so do interest rates on loans. This will increase the cost of production of industry and trade and will harm the general public.