Nepal’s Banking Sector Update: Deposit Interest Rates Decline In Jestha
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14th May 2026, Kathmandu
The financial landscape in Nepal is witnessing a notable shift as deposit interest rates decline for the month of Jestha.
Deposit Interest Rates Decline
Commercial banks across the country have officially published their updated interest rate schedules, revealing a general trend toward lower returns on fixed deposits. While the banking sector has seen various fluctuations in recent months, the data for Jestha suggests a continued easing of rates, with a significant number of major institutions choosing to reduce their offerings for individual depositors. This marginal decline in the average deposit rate reflects the current liquidity and economic conditions influencing the decisions of bank boards and financial regulators in Nepal.
Commercial Bank Interest Rate Adjustments
Among the major commercial banks, several high profile institutions led the way in reducing their individual fixed deposit rates for Jestha. For instance, NIC ASIA Bank lowered its maximum rate for individual fixed deposits to 4.50 percent. Similarly, Himalayan Bank reduced its offering to 4.25 percent, while Standard Chartered Bank Nepal adjusted its rate to 4 percent. Other banks following this downward trend included NMB Bank, which lowered its rate to 4.80 percent, Citizens Bank International, which moved to 4.10 percent, and Nepal Bank Limited, which settled at 4.25 percent for the month. These adjustments highlight a collective movement among a substantial portion of the commercial banking segment to manage interest expenses.
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Stability In Rates For Major Financial Institutions
Despite the broader trend where deposit interest rates decline, a large group of commercial banks opted for stability by maintaining their rates from the previous month. Banks such as Nabil Bank, Nepal Investment Mega Bank, and Nepal SBI Bank kept their deposit rates unchanged for Jestha. Other institutions that did not alter their rates include Everest Bank, Prime Commercial Bank, Global IME Bank, Machhapuchchhre Bank, and Prabhu Bank. Furthermore, state owned entities like the Agricultural Development Bank and Rastriya Banijya Bank also maintained their previous month deposit structures. This stability provides a predictable environment for current customers of these institutions during a period of wider market volatility.
Exceptions And Development Bank Trends
In a move that contrasted with the general market direction, Siddhartha Bank stood out as the only commercial bank to implement a slight increase in its individual fixed deposit rate. The bank raised its rate marginally from 4 percent to 4.05 percent. Meanwhile, the development bank sector also mirrored the decline seen in commercial banking. Institutions such as Lumbini Development Bank, Muktinath Bikas Bank, Kamana Sewa Bikas Bank, and Shangrila Development Bank all lowered their deposit rates for Jestha. On the other hand, Garima Bikas Bank and Mahalaxmi Bikas Bank chose to maintain their existing rates, reflecting a mixed but generally cautious approach within the development banking category.
Overall Market Outlook And Statistical Decline
The cumulative effect of these adjustments is a visible drop in the average maximum interest rate across the industry. Statistics show that the average maximum interest rate on individual fixed deposits fell from 4.4 percent in Baisakh to 4.343 percent in Jestha. This continued easing of rates is a critical indicator for investors and savers who are navigating the Nepali financial market. As deposit interest rates decline, many individuals may look toward alternative investment vehicles or adjust their savings strategies to account for the reduced returns on traditional fixed deposit accounts. The banking sector remains focused on balancing competitive positioning with the necessity of managing liquidity and operational costs in the current fiscal environment.
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