Commercial banks cut deposit rates for mid-August to mid-September amid excess liquidity
Summary
Commercial banks have lowered deposit interest rates for mid-August to mid-September 2026 as excess liquidity and weak credit demand continue to weigh on the financial system. Siddhartha Bank made the biggest cut, while Nabil Bank and Prabhu Bank still offer the highest individual deposit rates at 4.55%.
Key Points
- Commercial banks cut deposit rates for mid-August to mid-September 2026 because of excess liquidity and weak credit demand.
- The average maximum individual deposit rate fell to 4.136% from 4.1675%, while institutional rates dropped to 3.081% from 3.116%.
- Five banks reduced rates, led by Siddhartha Bank, which cut individual rates by 0.29 percentage points to 3.76%.
- Nabil Bank and Prabhu Bank remained the highest-rate lenders for individual deposits at 4.55%.
