Commercial Banks Lower Interest Rates For Shrawan 2026 Amid Ample Liquidity

Untitled design - 1

16th July 2026, Kathmandu

Nepal’s commercial banks have published their fixed deposit interest rates for Shrawan 2026, with several banks lowering rates compared to the previous month.

Commercial Banks Lower Interest Rates

While most banks have maintained their existing rates, a few have reduced interest rates on both individual and institutional fixed deposits.

Banking analysts attribute the continued decline in deposit interest rates to ample liquidity in the banking system and relatively weak demand for loans.

KEY HIGHLIGHTS OF COMMERCIAL BANKS’ INTEREST RATE ADJUSTMENTS

The shifting financial dynamics reflect a high cash surplus within the national banking system. The adjustment of deposit returns indicates that major lenders are striving to manage their fund costs efficiently.

The new interest rate structures across the country highlight a downward trend in deposit yields, focusing on falling averages, key bank cuts, and notable exceptions:

DECLINE IN AVERAGE INTEREST RATES

According to the latest published rates, the average interest rate on individual fixed deposits has declined from 4.27 percent in Ashadh to 4.17 percent in Shrawan. Similarly, the average institutional fixed deposit rate has fallen from 3.18 percent to 3.12 percent.

Advertisement

DETAILS OF INTEREST RATE CUTS BY MAJOR LENDERS

Among all commercial banks, Rastriya Banijya Bank recorded the largest reduction. The specific rate cuts implemented by the commercial banks include:

• Rastriya Banijya Bank cut its individual fixed deposit rate by 0.75 percentage points and its institutional deposit rate by 1 percentage point.
• Global IME Bank reduced individual deposit rates by 0.50 percentage points and institutional rates by 0.25 percentage points.
• NMB Bank lowered individual rates by 0.25 percentage points and institutional rates by 0.50 percentage points.
• Citizens Bank reduced individual rates by 0.15 percentage points and institutional rates by 0.50 percentage points.
• Kumari Bank and Standard Chartered Bank Nepal slightly reduced their individual fixed deposit rates by 0.06 and 0.10 percentage points, respectively.

UNCHANGED RATES AND SPECIFIC RATE INCREASES

In contrast to the general trend, Nepal Bank Limited increased its institutional fixed deposit interest rate from 3.00 percent to 4.00 percent. Most other commercial banks kept their rates entirely unchanged for the month of Shrawan. Based on the latest rates, Prabhu Bank and Nabil Bank are offering the highest individual fixed deposit interest rate of 4.55 percent, making them the top paying commercial banks for individual depositors.

COMMERCIAL BANKS FIXED DEPOSIT INTEREST RATES LIST FOR SHRAWAN 2026

The following details outline the individual and institutional interest rates offered by commercial banks for the month of Shrawan 2026:

• Agricultural Development Bank offers 4.15 percent for individual and 2.75 percent for institutional deposits.
• Everest Bank offers 4.05 percent for individual and 3.50 percent for institutional deposits.
• Nepal Bank offers 4.25 percent for individual and 4.00 percent for institutional deposits.
• Kumari Bank offers 3.85 percent for individual and 3.01 percent for institutional deposits.
• Nepal SBI Bank offers 4.10 percent for individual and 2.75 percent for institutional deposits.
• Laxmi Sunrise Bank offers 4.00 percent for individual and 3.25 percent for institutional deposits.
• Global IME Bank offers 4.00 percent for individual and 2.75 percent for institutional deposits.
• Prime Commercial Bank offers 4.00 percent for individual and 2.75 percent for institutional deposits.
• Citizens Bank International offers 3.95 percent for individual and 3.00 percent for institutional deposits.
• Prabhu Bank offers 4.55 percent for individual and 2.75 percent for institutional deposits.
• Machhapuchchhre Bank offers 4.50 percent for individual and 3.00 percent for institutional deposits.
• NMB Bank offers 4.50 percent for individual and 3.50 percent for institutional deposits.
• Standard Chartered Bank Nepal offers 3.85 percent for individual and 2.75 percent for institutional deposits.
• Himalayan Bank offers 4.00 percent for individual and 3.50 percent for institutional deposits.
• Siddhartha Bank offers 4.05 percent for individual and 3.25 percent for institutional deposits.
• Nabil Bank offers 4.55 percent for individual and 3.01 percent for institutional deposits.
• Sanima Bank offers 4.50 percent for individual and 3.30 percent for institutional deposits.
• Rastriya Banijya Bank offers 4.00 percent for individual and 3.00 percent for institutional deposits.
• NIMB Bank offers 4.50 percent for individual and 3.50 percent for institutional deposits.
• NIC Asia Bank offers 4.00 percent for individual and 3.00 percent for institutional deposits.

IMPACT OF LIQUIDITY SURPLUS ON THE BANKING SYSTEM

The decision of commercial banks to lower interest rates is a direct response to the massive amount of idle cash sitting in their vaults. Because economic activities have not fully gained speed, credit disbursement remains slow, prompting banks to discourage large high yield deposits. By adjusting deposit rates downward, financial institutions are attempting to safeguard their net interest margins and lower the cost of funds.

This reduction in deposit rates will eventually lead to a decline in the base rate of commercial banks, which is good news for prospective borrowers. As base rates drop, premium rates on retail loans, home loans, and industrial credit will also decrease, making borrowing cheaper. Financial experts believe that this could help stimulate economic recovery by encouraging corporate houses and individuals to take out new loans for business expansion and investment.

For retail depositors, however, the continuous fall in interest rates means a lower return on their savings. Many individual savers might begin exploring alternative investment avenues, such as the stock market or government bonds, to achieve better yields. The coming weeks will reveal whether this rate adjustment successfully drives credit growth or if the banking sector will continue to navigate a period of high liquidity and low credit utilization.

For More: Commercial Banks Lower Interest Rates