Kathmandu-Commercial banks have announced lower interest rates on personal fixed deposits for the month of Ashar, continuing a downward trend seen over the past three months.

Among the major banks, NMB Bank reduced its fixed deposit rate from 4.90 percent in Baisakh to 4.80 percent in Jestha and further to 4.75 percent in Ashar. Rastriya Banijya Bank, meanwhile, has maintained a steady rate of 4.75 percent throughout the period.

NIC Asia Bank and Himalayan Bank recorded some of the sharpest reductions. NIC Asia lowered its rate from 4.75 percent in Baisakh to 4 percent in Ashar, while Himalayan Bank cut its rate from 4.50 percent to 4 percent during the same period.

Several banks have kept their rates unchanged. Prabhu Bank and Nabil Bank continue to offer 4.55 percent interest on personal term deposits, while Global IME Bank, Machhapuchhre Bank, Laxmi Sunrise Bank, Sanima Bank, and Nepal Investment Mega Bank have maintained a fixed rate of 4.50 percent from Baisakh through Ashar.

Nepal Bank reduced its rate from 4.50 percent in Baisakh to 4.25 percent in Jestha and retained the same rate for Ashar. Nepal SBI Bank has kept its rate unchanged at 4.25 percent over the last three months.

Citizens Bank International lowered its rate from 4.15 percent in Baisakh to 4.10 percent in Jestha and maintained that rate in Ashar. Similarly, Prime Commercial Bank reduced its rate from 4.15 percent in Jestha to 4 percent for Ashar.

Agricultural Development Bank has maintained a stable rate of 4.15 percent throughout the period. Standard Chartered Bank recorded the lowest rate among commercial banks, reducing it from 4.10 percent in Baisakh to 4 percent in Jestha and further to 3.95 percent in Ashar.

Siddhartha Bank and Everest Bank have consistently offered 4.05 percent interest since Baisakh, while Kumari Bank slightly reduced its rate from 4.05 percent to 3.96 percent in Jestha and retained the same rate for Ashar.

Overall, fixed deposit interest rates have continued to decline as banks face slowing demand for loans while deposit collections remain strong. Although lower rates may reduce borrowing costs, they also decrease returns for depositors who depend on fixed deposit income.