There is little likelihood that interest rates will rise in October.

It's possible that even in October, commercial banks won't raise the interest rate on deposits.

According to bankers, there is little chance of an increase in the interest rate on deposits because the capital available for credit investment is sufficient and the development of credit in banks is not encouraging.

"Compared to the previous year, there has been some improvement in loan investment; however, this improvement has not been achieved by increasing enthusiasm," stated Sunil KC, the CEO of NMB Bank and President of the Nepal Bankers Association. "

The chief executive officer of Sanima Bank, Nischal Raj Pandey, adds that there's a chance the interest rate on deposits won't rise in the upcoming months.

"There is no significant improvement in credit expansion from our banks, but if deposits mature in some banks, if deposits move to other banks, some may increase," Pandey said, "on average, there is a possibility that the interest rate of deposits will not increase."

The criteria set forth by the National Bank state that banks are only permitted to raise deposit interest rates by a maximum of 10 percentage points each month. It's also improbable that more banks will significantly hike deposit interest rates.

The average interest rate that banks charged for deposits fell a little bit in August. In July, banks offered an average interest rate of 6.67 percent on deposits; in August, that figure was 6.46 percent.

The interest rate on loans won't change because the interest rate on deposits won't rise. According to banker KC, there's a chance that the interest rate on the loan will drop even lower.

"Last year in July and August, banks raised deposits up to 11 percent, they are maturing," KC noted.

There is little chance that the interest rate on the loan will rise further because the base rate that was used to calculate it will decline. The three-month average base rate serves as the basis for adjusting the loan interest rate.

Credit for imports has not become more in demand. Additionally, bankers assert that since the majority of them still have credit restrictions, even if this type of demand were to expand, the interest rate on loans would not rise right once.

The lenders claim that whilst there was a loan investment of roughly 20–30 billion rupees in July and August of previous year, this year's investment has surpassed that amount.

"This time, loan investment has already increased by 32/33 billion, it may improve further," KC added, "but many banks are still in a convenient situation."

Bankers claim that even today, a large number have loan-to-deposit ratios of about 80%, and some have even lower percentages. In accordance with National Bank regulations, banks are permitted to invest up to 90% of deposits. Based on this, the banks currently hold loanable investment capital worth roughly $7 billion.

The demand from this industry has not increased much, notwithstanding a slight improvement in the decline in imports. Mortgage loans for shares, cars, and real estate have recently improved.

The NADA Auto Show saw a large number of reservations for cars, but the bank has not yet met the demand. According to bankers, there might have been a minor decline in the demand for loans for cars and real estate because of the approaching Soharshraddha.