KATHMANDU: Commercial banks have lowered their deposit interest rates for mid-August to mid-September 2026, driven by persistent excess liquidity and weak credit demand in the financial system.
The average maximum interest rate on individual deposits fell by 0.0315 percentage points to 4.136%, down from 4.1675% from mid-July to mid-August, while institutional deposit rates dropped to an average of 3.081% from 3.116%.
Five commercial banks lowered their deposit rates, with Siddhartha Bank making the largest cut—reducing individual rates by 0.29 percentage points to 3.76% and institutional rates to 3.05%.
Nepal Bank reduced its individual rate to 4.15% and institutional rate to 3.50%, while Citizens Bank, Kumari Bank, and Standard Chartered Bank lowered their individual rates to 3.85%, 3.76%, and 3.80%, respectively.
Meanwhile, the remaining 15 commercial banks kept their rates unchanged, with Nabil Bank and Prabhu Bank continuing to offer the highest individual deposit rates in the market at 4.55%.
