Kathmandu. The interest rate on deposits of commercial banks, which has been continuously declining in recent times, has come down further for the month of September. The average interest rate on personal fixed deposits has come down to 4.0895 percent in September from 4.136 percent in August.

In September, the average interest rate of personal fixed deposits of banks has decreased by 0.0465 percentage points compared to August. Due to the lack of liquidity in the banking system, the interest rate of deposits has been continuously decreasing in recent times as the competition among banks for collection of deposits has decreased.

Four commercial banks have reduced the interest rates on personal fixed deposits for the month of September. Nabil Bank, Standard Chartered Bank, Kumari Bank and Everest Bank have reduced the interest rates compared to the previous month. The interest rates of the remaining commercial banks have remained unchanged as in the month of August.

Prabhu Bank is the bank that offers the highest interest rate on personal fixed deposits for the month of September. Prabhu Bank is offering 4.55 percent interest rate to its customers.

Similarly, Machhapuchchhre Bank, Nepal Investment Mega Bank, NMB Bank and Sanima Bank are offering 4.50 per cent interest on fixed deposits.

Similarly, Nabil Bank will provide 4.25 per cent interest rate while Agricultural Development Bank and Nepal Bank will provide 4.15 per cent interest rate.

As liquidity eases in the banking system, the interest rate of deposits continues to decrease. The fall in interest rates is likely to further reduce the interest rate of loans for customers taking loans from the bank in the coming days.