Deposit interest rate to remain stable in July, loans to decrease

KATHMANDU, June 13: The interest rate of deposits will remain stable in the coming month of July. This decision was made during the meeting of the collective organization of commercial banks, Nepal Bankers Association (NBA) on Tuesday.

Commercial banks are offering 5.4 percent to 7.4 percent interest on ordinary deposits and 7.99 percent to 9.99 percent interest on fixed deposits. The decision to keep the deposit interest stable was informed by the President of the Bankers Association and the Chief Executive Officer (CEO) of NMB Bank Sunil KC to Ratopati.

However, the interest rate of loans will decrease. Investable capital has increased in banks due to a lack of investments, an increase in deposits and a decrease in inter-banking interest rate. This has forced the banks to reduce the interest rates of loans. The central bank will reduce the bank rates by 1 percent and spread rate 4.02 according to President KC.

Banks are taking 12.03 percent interest in loans at present.