Base rate, as defined by Nepal Rastra Bank, includes all cost of funds, cost of liquidity (CRR and SLR), and cost of operation. If a bank’s returns on government securities is lower than deposit collection rate, they can add the shortfall in the base rate.
This is the minimum rate banks have to charge their customers. Banks usually add a premium to the base rate to derive the total rate of interest on a particular type of loan facility. This makes the loan facility provided by different banks vary in the interest rate charged.
A list has been prepared considering the latest base rate, spread rate, marginal loan rate, savings rate and fixed deposit rate for individuals.
The average base rate of commercial banks stood at 9.50% in the previous quarter while the average spread rate stood at 5.07% in the same period. Considering the latest base rate, till the end of Poush and Magh 2076, the average has fallen to 9.47%. Similarly, the average spread rate in the review period stood at 5.05%.
Civil Bank Limited (CBL) charges the highest base rate at 11.04% while Rastriya Banijya Bank (RBB) charges the lowest at 6.64%. In terms of spread rate, Standard Charted Bank (SCB) leads with 5.93% while Laxmi Bank Limited (LBL) and Nepal Bank Limited (NBL) have the lowest spread rate at 4.44%.
The maximum interest on savings account stood at 6.50% while the lowest interest stood at 3% provided by Nepal SBI Bank Limited (SBI). The maximum fixed deposit rate provided by all commercial banks stood at 9.25% for individuals. Depending upon the amount and period of deposit, the lowest yield on fixed deposit is provided by Standard Chartered Bank (SCB) at 6%.