Seven Commercial Banks Lower Deposit Rates Amid Credit Slowdown

The average maximum interest rate on individual fixed deposits offered by commercial banks declined by 0.07 percentage points for Asar (mid-June to mid-July) compared to that for Jestha (mid-May to mid-June).

Of the 20 commercial banks, 13 left their rates unchanged, while seven banks — Laxmi Sunrise Bank, NIC Asia Bank, Himalayan Bank, Prime Commercial Bank, Kumari Bank, Standard Chartered Bank Nepal, and NMB Bank — lowered their fixed-deposit rates for individuals.

Laxmi Sunrise Bank and NIC Asia Bank cut their maximum individual fixed-deposit rates from 4.5 percent to 4 percent. Himalayan Bank reduced its rate by 0.25 percentage points to 4 percent, while Prime Commercial Bank lowered it by 0.15 percentage points to 4 percent.

Kumari Bank, Standard Chartered Bank Nepal, and NMB Bank each trimmed their rates by 0.05 percentage points, bringing them down to 3.91 percent, 3.95 percent, and 4.75 percent, respectively.

According to the banks, these maximum rates generally apply to fixed deposits with tenures ranging from two to 10 years. Shorter-term deposits typically offer interest rates below 4 percent.

The continued decline in deposit rates comes as the banking system remains flush with liquidity, with deposit growth significantly outpacing credit expansion.

Nepal Rastra Bank data show that deposits at banks and financial institutions reached Rs 7,949.28 billion by mid-May 2026, while private-sector credit stood at Rs 5,809.71 billion during the same period.

Interest Rates on Individual FD (June 15 to July 16)

Source: Respective Banks