Commercial banks fail to increase deposit collection despite increasing interest rate

Published On: October 15, 2022 11:15 AM NPT By: Republica  | @RepublicaNepal


Commercial banks fail to increase deposit collection despite increasing interest rate

KATHMANDU, OCT 15: Commercial banks are likely not to raise the interest rate on their deposit collection in the next month after the recently increased interest rate failed to attract the deposit collection.

According to a banker, the meeting of Nepal Bankers’ Association held on Thursday decided not to increase interest rate further at present.

Since mid-September, banks have increased their interest rates on fixed deposits by 10 percent to 12.13 percent. Similarly, the banks provide interest of 7.13 percent on an average in the savings account. However, the banks’ move failed to increase deposit collection by a notable amount over the period.

According to the records of Nepal Rastra Bank (NRB), the deposit collection in the first week of October declined by Rs 8 billion, even after the banks increased their interest rate. 

 

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