21st October 2025, Kathmandu
NMB Bank Limited’s latest adjustment to its deposit and lending interest rates, effective from Kartik 1, 2082 (October 18, 2025), is a significant development in the Nepali financial landscape, signaling a clear strategic pivot toward stability, selective growth, and sustainable finance.
NMB Interest Rates Revision
This move comes as commercial banks in Nepal, including NMB, have generally been observed to be reducing rates on individual and institutional fixed deposits, reflecting the current macroeconomic environment and shifts in market liquidity. NMB Bank, along with another major bank, reportedly led the market with steep reductions in fixed deposit rates for the month of Kartik, suggesting an effort to manage the overall cost of funds while directing credit toward priority and sustainable sectors. This comprehensive revision affects a wide array of products, from savings and fixed deposits for both local and foreign currencies to premium loan categories for corporate and retail customers.
Deposit Rate Structure: Balancing Returns and Market Trends
The revised deposit rates are strategically segmented to attract specific customer pools while maintaining competitiveness in a declining rate environment. The maximum interest rates offered reflect a tiered approach, rewarding loyalty and specific financial behaviors like payroll and remittance activity.
High-Yield Savings and Remittance Focus
NMB Bank continues to utilize its niche deposit products to secure critical long-term and foreign currency inflows. The prominent offerings include:
NMB Janmabhumi Bachat Khata (Remittance): The rate of 5.26% p.a. is highly competitive, demonstrating the bank’s recognition of the critical importance of remittance in the national economy and as a stable source of foreign exchange. By offering a premium rate on remittance-linked savings, the bank effectively draws capital from Nepalis working abroad.
NMB Premium Super Talab Khata (Payroll): Offering 4.26% p.a., this rate is designed to attract salaried professionals, fostering sticky, stable payroll accounts and deeper relationships with corporate entities. This rate is substantially higher than the 2.76% offered on most other general savings products.
Fixed Deposits and Market Comparison
The new fixed deposit rates for individuals, ranging from 2.75% to 5.00%, mark a general downward adjustment, which aligns with the broader market trend observed in October 2025. Market data indicates that NMB Bank, alongside other commercial banks, has implemented significant cuts to fixed deposit rates this month. For context, as of Kartik 1, 2082, some of NMB’s peers are offering individual fixed deposit rates up to 5.00% or slightly higher for long-term deposits, which places NMB’s top rate at the competitive edge of the current market, especially in the context of recent rate cuts. This move is consistent with managing the excess liquidity in the banking system and lowering the overall cost of funds.
Foreign Currency Deposits for Non-Resident Nepalese
The foreign currency deposit structure is crucial for managing the bank’s international liquidity profile. The rate of up to 4.10% on USD NMB Namaste FCY Fixed Deposit for Non-Resident Nepalese (NRN) remains an attractive proposition, particularly when compared to similar foreign currency offerings from other Nepali commercial banks. This preferential treatment for NRNs aims to bolster the bank’s foreign currency reserves, offering stable returns to the diaspora community while providing the bank with access to much-needed hard currency.
Strategic Loan Pricing: Promoting Economic and Green Growth
The lending rates are structured to promote lending toward crucial sectors, balancing risk with promotional incentives, especially for sustainable development initiatives. All loan premiums are calculated as a spread over the bank’s Base Rate (BR), which has been on a downward trajectory (NMB’s Base Rate for Ashwin 2082 was 5.66%, reflecting a continued easing of monetary conditions).
Corporate and SME Financing
The premiums for corporate and SME loans are set to catalyze economic activity where it’s needed most:
Corporate and Mid-Corporate Loans: Premiums range from 0.25% to 2.5% above the Base Rate. This is a targeted effort to provide competitive financing for large-scale operations and working capital, ensuring that the bank remains a preferred partner for established businesses.
SME/MSME Loans: The slightly higher premium range of 1% to 3% above the Base Rate reflects the typically higher risk associated with Small and Medium Enterprises, yet remains accessible to support this crucial segment of the economy.
The Sustainable Banking Mandate
A cornerstone of NMB Bank’s strategy, recognized by multiple ‘Bank of the Year’ awards, is its focus on sustainable banking. The new rate structure strongly emphasizes this commitment, using pricing mechanisms to incentivize environmentally friendly choices.
Electric Vehicle (EV) Loans: The highly attractive fixed rates starting at 8.89% (up to 5 years) and 8.99% (5-7 years) for Electric Vehicle loans are a market highlight. These fixed rates are significantly lower than the 13% to 14% offered for “Other Retail Term Loans,” making the transition to EV ownership financially compelling. This aggressive pricing positions NMB as a leader in promoting green mobility and reducing Nepal’s reliance on fossil fuels.
Green Homes Discount: The 0.5% discount on interest for loans directed toward Green Homes is a direct incentive for constructing or purchasing energy-efficient and environmentally responsible buildings. This policy encourages both borrowers and developers to adopt sustainable construction practices, aligning the bank’s portfolio with global Environmental, Social, and Governance (ESG) standards.
Retail Loan Accessibility
The retail loan segment offers stability and affordability for key life investments:
Home Loan (Sulav Ghar Karja): The fixed rate of 9.99% for up to 10 years provides borrowers with certainty against fluctuating market rates, making long-term housing finance more predictable and accessible.
Other Retail Term Loans: With rates ranging from 13% to 14%, these are generally reflective of the higher premium and risk associated with personal, non-priority lending compared to secured or sustainable-focused products.
Overall Significance and Market Impact
The revised interest rate structure, effective Kartik 1, 2082, solidifies NMB Bank’s position as a strategically minded institution that balances commercial viability with a commitment to sustainable development. By reducing deposit rates in line with market liquidity trends, the bank is managing its cost of funds effectively. Simultaneously, by offering aggressive, fixed, and discounted loan rates for Electric Vehicles and Green Homes, NMB is not just competing on price but is actively using its financial muscle to shape consumer behavior toward a greener future for Nepal. The premium on remittance and payroll savings ensures that the bank continues to attract stable and essential funding sources, thereby managing its overall liquidity and balance sheet structure in a dynamic financial environment.
This revision is not merely an operational change; it is a strategic declaration that NMB Bank is leveraging a period of easing monetary conditions to lower the barrier to entry for green financing, cementing its reputation as a leader in sustainable banking and providing a tangible benefit to the customers who choose to align their finances with these values.
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