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Most of the commercial banks in the country have reduced interest rate on deposits for the month of Magh (mid-January to mid-February). 

Eighteen out of the 20 commercial banks have lowered interest rates on individual fixed deposits as the banking system grapples with excess liquidity. The credit expansion of commercial banks has consistently lagged behind deposit growth in recent months.

Banks, which are sitting on a substantial amount of loanable funds amid slow credit expansion, have adopted a strategy of lowering the cost of funds by reducing interest rates on deposits.

Class ‘A’ banks, which previously had a gentleman’s agreement on fixing interest rates collectively, have broken the ‘cartel’ and have been publishing rates individually since the beginning of the fiscal year 2023/24 in mid-July last year.

The Nepal Rastra Bank (NRB) requires commercial banks to maintain a maximum difference of five percentage points between the lowest rate on savings and the highest interest rate offered on individual fixed deposits. Similarly, banks cannot change interest rates by more than 10 percent compared to the previous month.

Out of the 20 commercial banks in the country, Everest Bank Ltd and NMB Bank Ltd have kept the interest rates on personal fixed deposits unchanged at eight percent and nine percent, respectively, compared to the previous month. Consumers of NMB, however, can get nine percent interest rate only on fixed deposit schemes of more than three years.

Citizens Bank International Ltd has offered the highest interest of 9.15 percent on individual fixed deposits this month. The bank had offered 9.35 percent interest on individual fixed deposits in the previous month.

Nepal Investment Mega Bank Ltd is offering 8.6 percent interest on individual fixed deposits of more than three years. Nepal SBI is offering 8.25 percent interest on individual fixed deposits, while both Himalayan Bank Ltd and Sanima Bank Ltd are offering 8.15 percent.

Prime Commercial Bank, Siddhartha Bank Ltd, Global IME Bank, and Nabil Bank Ltd are all offering 8.1 percent interest on individual fixed deposits.

Rastriya Banijya Bank Ltd (RBBL) and Standard Chartered Bank Nepal Ltd are offering 8.07 percent interest on individual fixed deposits for the month of Magh. RBBL is offering 8.07 percent interest rates on deposits parked for a minimum of two years, while Standard Chartered is offering the interest on deposits pledged for more than five years.

Prabhu Bank Ltd and NIC Asia are both offering an interest rate of 8.065 percent on individual fixed deposits. Likewise, Machhapuchhre Bank Ltd, Laxmi Sunrise Bank Ltd, and Nepal Bank are all offering eight percent interest on individual fixed deposits.

The Nepal Stock Exchange (NEPSE) plunged by -7. 24 points to close at 2, 155.82 points on Thursday.

Similarly, the sensitive index dropped by -2. 68 points to close at 393. 62 points.

A total of 21,125,776-unit shares of 298 companies were traded for Rs 8. 17 billion.

Meanwhile, Ridi Power Company Limited, Synergy Power Development Ltd, Mahuli Laghubitta Bittiya Sanstha Limited and Ganapati Laghubitta Bittiya Sanstha Limited were the top gainers today with their price surging by 10. 00 percent.

Likewise, Terhathum Power Company Limited was the top loser as its price fell by 9. 43 percent.

At the end of the day, the total market capitalization stood at Rs 3. 38 trillion.

The price of gold has dropped by Rs 700 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the yellow metal is being traded at Rs 117, 500 per tola today. It was traded at Rs 118, 200 per tola on Wednesday

Meanwhile, tejabi gold is being traded at Rs 116, 950 per tola. It was traded at Rs 117, 650 per tola.

Similarly, the price of silver has dropped by Rs 10 and is being traded at Rs 1,390 per tola today.

The Nepal Stock Exchange (NEPSE) plunged by -12. 10 points to close at 2, 163.06 points on Wednesday.

Similarly, the sensitive index dropped by -1. 11 points to close at 396. 31 points.

A total of 33,525,702-shares of 300 companies were traded for Rs 9. 76 billion.

Meanwhile, Global IME Laghubitta Bittiya Sanstha Ltd and Nepal Warehousing Company Limited were the top gaines today with their price surging by 10. 00 percent.

Likewise, Eastern Hydropower Limited  and Bhugol Energy Development Company Limited were ​​​​​​the top losers as their price fell by 10. 00 percent.

At the end of the day, the total market capitalization stood at Rs 1. 17 trillion.