Nepal’s Commercial Banks Announce New Fixed Deposit Interest Rates for October 2025
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16th September 2025, Kathmandu
Nepal’s commercial banks have announced their updated fixed deposit interest rates for the Nepali month of Ashoj (mid-September to mid-October 2025), confirming a continued downward trend.
Banks Announce New Interest Rates
This reduction reflects a banking sector with ample market liquidity and a cautious approach to lending. The data, effective as of September 16, 2025, shows that while some banks are still offering competitive rates, the general direction is a gradual decrease in returns for depositors.
Changes in Deposit Rates
The latest rate announcement reveals a clear pattern of market-wide adjustments. Eight commercial banks have lowered their maximum fixed deposit rates for the month of Ashoj. The largest cuts came from Prime Commercial Bank and Everest Bank, both reducing their rates by 0.50 percentage points. Other banks, including Agricultural Development Bank, NIC Asia Bank, Nepal Bank, Kumari Bank, Nepal SBI Bank, and Himalayan Bank, also confirmed rate cuts, albeit of varying magnitudes. This coordinated reduction suggests that banks are comfortable with their current deposit levels and face less pressure to attract funds through higher interest rates. The ample liquidity is supported by the overall macroeconomic stability, including strong remittance inflows and moderate credit growth.
In contrast, ten major commercial banks have opted to maintain their rates from the previous month, seeking a balance between a stable liquidity position and the need to stay competitive. By holding rates steady, these banks appeal to customers who prioritize predictable returns and are looking to avoid the uncertainty of a fluctuating market.
Interestingly, two banks defied the trend by implementing small increases. Standard Chartered Bank raised its rate by 0.05 percentage points, while Laxmi Sunrise Bank increased its rate by 0.25 percentage points. These modest hikes could be a strategic move to attract specific customer segments or to prepare for the upcoming festive season, a time when cash demand typically rises.
Impact on Depositors and the Broader Economy
For depositors, these changes mean slightly reduced returns on their savings. However, the market still offers opportunities to lock in higher rates. Several leading banks, including Himalayan Bank, Machhapuchhre Bank, NMB Bank, and Global IME Bank, continue to offer attractive fixed deposit rates of up to 6 percent. This provides a competitive option for savers who are looking for the highest available yields in the current environment. The decision to maintain or slightly increase rates by some banks, such as Laxmi Sunrise, also creates a niche opportunity for depositors seeking a blend of stability and incremental gains.
The overall trend of declining interest rates is a clear indicator of ample market liquidity. This abundance of funds within the banking system suggests that banks have sufficient deposits relative to their lending needs. This is a direct consequence of a cautious monetary environment where the central bank has been managing a supportive stance while keeping an eye on moderate credit growth. The low-interest-rate regime also benefits borrowers, as it makes loans more affordable and can stimulate investment and economic activity.
The latest rate update confirms that Nepal’s commercial banking sector is in a phase of gradual rate normalization. As the country heads into the major festive season of Dashain, the demand for cash and credit is likely to increase. Future updates on interest rates will be crucial in determining whether this downward trend persists or if market forces begin to push rates upward again to attract more deposits.
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