Jestha Interest Rate Update: Commercial Banks Implement Selective Cuts Amid Market Stability

Commercial banks in Nepal have disclosed their fixed deposit (FD) interest rates for the month of Jestha, reflecting a trend of broad stabilization across the sector. While most banks chose to keep their existing rates unchanged, a strategic few implemented minor downward revisions to their individual and institutional deposit offerings. In the individual fixed deposit category, NMB Bank continues to lead with the highest interest rate among commercial banks at 4.8 percent, despite a slight decrease from its previous 5 percent benchmark. At the other end of the spectrum, Kumari Bank offers the lowest individual FD rate for the month, set at 3.96 percent. The industry saw further tightening from several major institutions: Himalayan Bank, Nepal Bank, and NIC Asia Bank each reduced their individual FD rates by 0.25 percentage points, while Standard Chartered Bank Nepal adjusted its rate downward by 0.10 percentage points. The institutional deposit sector witnessed more dynamic movement. Citizens Bank International recorded the most significant upward revision, increasing its institutional FD rate by 0.5 percentage points to reach 3.5 percent. Conversely, downward pressure persisted elsewhere, with Kumari Bank, Standard Chartered Bank, and NIC Asia Bank reducing their institutional rates by 0.49, 0.27, and 0.25 percentage points, respectively. Despite these specific adjustments, the market is characterized by widespread continuity. Twelve commercial banks, including Nabil Bank, Global IME Bank, Everest Bank, and Rastriya Banijya Bank, have maintained their rates, signaling a cautious approach as the banking sector monitors liquidity and market demand throughout the coming month.