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11 out of 28 banks to drop their Base Rate

By Aashish Vermaa on Nov 14,2017 - 10:17

In our previous article we talked about:

What is Base Rate?

What happens if the base rate of commercial banks rises?

What happens if the base rate of commercial banks falls?

Latest Base Rate of Commercial Banks, along with speculations that base rates are about to decrease looking at the current market trends.

And as anticipated, 11 out of 28 commercial banks have already cut their base rate, in the first quarter of this fiscal year. This drop in the Base rate will ultimately benefit the borrowers as the banks will have to lower their interest rates on loans as per the rules of Nepal Rastra Bank. 

According to the central bank’s rule, banks need to publish base rate in every three months.

The base rate, also known as ‘bank rate’, came down as the high-cost fixed deposits have matured, said Ramesh Aryal, CEO of NCC Bank. “Those banks that had their base rates at the higher end have started bringing the rates down, which means the situation is gradually improving.”

 

Himalayan Bank, Siddhartha Bank, Citizens Bank, Mega Bank, NIC Asia Bank, Kumari Bank, Janata Bank, Civil Bank, Prabhu Bank, Century Bank and Sunrise Bank have lowered their base rate in the first quarter of this fiscal. Standard Chartered Bank’s base rate has remained unchanged, while the remaining commercial banks base rate has increased slightly.

Comparative figures

 

Bank                                                    Q4 of 2016-17        Q1 of 2017-18

Agricultural Development                          11.27%                   11.97%

BoK                                                         10.57%                   10.68%

Century                                                   11.17%                    11.13%

Citizens                                                    11.17%                   10.72%

Civil                                                         11.59%                   11.55%

Everest                                                     7.68%                     7.91%

Global IME                                                10.40%                   10.54%

Himalayan                                                 9.57%                     9.45%

Janata                                                      11.93%                  11.50%

Kumari                                                     11.31%                   11.15%

Laxmi                                                       10.33%                   10.66%

Machhapuchchhre                                      10.29%                   10.48%

Mega                                                        11.00%                   10.72%

Nabil                                                          6.61%                     6.69%

Nepal                                                         6.29%                     6.90%

Nepal Bangladesh                                      10.28%                    11.39%

Nepal Credit & Commerce                           11.36%                   11.40%

Nepal Investment                                        8.36%                     8.91%

Nepal SBI                                                   8.98%                    9.32%

NIC                                                           11.27%                  10.78%

NMB                                                          10.12%                  10.21%

Prabhu                                                       10.51%                  9.80%

Prime                                                         10.64%                  10.95%

Rastriya Banijya                                           5.95%                   5.98%

Sanima                                                      10.20%                 10.27%

Siddhartha                                                 10.38%                  10.28%

Standard Chartered                                      6.47%                   6.47%

Sunrise                                                      11.19%                  10.82%

Tags -  Base Rate , Banks interest rates decline , Banks to cut their Base rate