January 12: Commercial banks of Nepal have agreed to reduce the interest rates on deposits from mid-January.

An executive committee meeting of Nepal Bankers Association (NBA) on Wednesday decided to reduce the interest rates immediately after the Special Annual General Meeting (AGM) of the umbrella body of CEOs of commercial banks.

As per the decision taken by NBA, commercial banks will charge a maximum of 11 percent interest on personal deposits and a maximum of 9 percent on institutional deposits in the Nepali month of Magh (mid-January to mid-February).

Back in the month of Asoj (mid-September to mid-October), the commercial banks had fixed the interest on personal deposits at 12.13 percent and that for institutional deposits at 10.13 percent. The interest rate remained unchanged in the following months of Kartik (mid-October to mid-November), Mangsir (mid-November to mid-December) and Poush (mid-December to mid-January).

Meanwhile, the Special AGM of NBA unanimously elected CEO of NMB Bank Sunil KC as the new president of NBA. KC, who was the acting president, was elected to lead the association by the Special AGM.

KC was appointed the acting president of NBA after the then President Anil Kumar Upadhyay’s term as the CEO of Agriculture Development Bank came to an end. The Special AGM was called to fill the vacant position of NBA president.