Base Rate of Commercial Banks in Nepal in 2078

Base Rate of Commercial Banks in Nepal

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In this post, we are going to list out the latest base rate of Nepali commercial banks for the fiscal year 2078. These are the latest base rate updated by the banks.

What is Base Rate?

Definition: Base rate is the minimum rate set by the Nepal Rastra Bank below which banks are not allowed to lend to their customers. Nepal Rastra Bank is a central bank that governs banks and financial institutions in Nepal. The base rate was introduced in order to enhance transparency in the credit market and ensure that banks pass on the lower cost of funds to their customers. Loan pricing will be done by adding a base rate and a suitable spread depending on the credit risk premium.

The base rate includes-

  • Cost of funds
  • Cost of liquidity (CRR and SLR)
  • Cost of operation

Base rates are determinants of interest rates but there is a difference between base rates and interest rates. When the base rate decreases, the interest rate also decreases.

Base rate was first implemented for the fiscal year 2069/70 so as to make transparent and competitive interest rate facility. In the year 2070, commercial banks were implemented and a year later, development banks and finance companies also introduced base rates. Banks determine the interest rate by adding a premium charge to their base rate. Banks can set their own criteria while setting the premium amount according to the type of customer they are lending.

PS: Base rate changes every month.

Which Bank has Lowest Base Rate in Nepal?

As per the latest update, Standard Chartered Bank has the lowest base rate with 5.18%. It was 6.61 for the previous year. Rastriya Banijya Bank had the highest base rate in the previous year.

Which Bank has Highest Base Rate in Nepal?

According to the latest update, Mega Bank has the highest Base Rate. i.e. 9.81%.

Base Rate of Commercial Banks in Nepal in 2078

Bank Base Rate %(2078) Base Rate %(2077)
Standard Chartered 5.18 6.61
Rastriya Banijya Bank 5.63 5.74
Nepal Bank 5.93 6.81
Nabil Bank 6.11 6.68
Nepal Investment Bank 6.77 7.34
Everest Bank 7 7.07
Agriculture Development Bank 7.12 8.53
Global IME Bank 7.41 7.25
Sanima Bank 7.45 7.73
NIC Asia Bank 7.48 6.50
Nepal Bangladesh Bank 7.51 9.87
Sidhhartha Bank 7.57 8.10
Laxmi Bank 7.57 8.01
Prabhu Bank 7.63 7.39
Machhapuchhre Bank 7.63 8.31
Himalayan Bank 7.73 7.16
Kumari Bank 7.88 8.40
NMB Bank 7.96 7.85
Century Commercial Bank 8.01 8.68
Nepal SBI Bank 8.11 8.37
Citizen Bank Int'l 8.11 8.81
NCC Bank 8.12 8.63
Civil Bank 8.26 8.88
Prime Commercial Bank 8.27 8.12
Sunrise Bank 8.40 7.80
Bank of Kathmandu 8.56 7.70
Mega Bank 9.81 8
Average 7.529 7.793

Base Rate as of Q1| FY 2078/79

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