KATHMANDU, Oct 18: Commercial banks have reduced their interest rate by an average of 0.26 percentage points for the month between mid-October and mid-November.
As per the announcement made by commercial banks, they have maintained the interest rate for the new month of Nepali calendar, starting from Saturday, at 5.20 percent on personal fixed deposits. Last month, the average interest rate stood at 5.46 percent. Out of 20 commercial banks, 14 have revised their rates whereas six have given continuity to the interest rates of last month.
Revised interest rate corridor system introduced
Over the last year, interest rates of banks and financial institutions (BFIs) have reduced their interest rates successively, citing the excessive liquidity with them. Currently, the BFIs are reported to have excess liquidity of more than Rs 1.15 trillion due to low demand for loans caused by the faded confidence of investors.
