The report contains two separate charts of interest rates on lending and deposits of 49 nationalised, private and foreign banks and development financial institutions (DFIs) effective for the month of October.

The central bank, which prepared the charts based on statistics from banks and DFIs, said there are divergences in interest rates for various loans and deposits as the scheduled banks independently determine their own rates.

So the publication of monthly report containing cumulative averages of rates fixed for loans and deposits will be helpful to the general public, said a BB official. "This will keep the people up to date on the rates and help them chose banks."

"This decision has been taken to foster competition between commercial banks and put indirect pressure on them to bring down lending rates," said a BB official.

According to the report, lending rates of nationalised commercial banks (NCBs) for agriculture sector are five to 10 per cent, term lending rates nine to 10.5 per cent, commercial lending rates 14.5 to 15 per cent and rate on working capital 13 per cent.

For private commercial banks (PCBs) lending rates for the agriculture sector are nine to 14.5 per cent, term lending rates 13 to 15.5 per cent, commercial lending rates 11 to 16 per cent and interest rate on working capital 13 per cent.

Foreign banks (FBs) maintain an interest rate of 10.5 to 15 per cent for term lending, 8.25 to 15 per cent for working capital and 8.5 to 16 per cent for commercial lending.

Deposit rates are 4.5 to 7.25 per cent in NCBs, 4.75 to 12 per cent in PCBs, and 5 to 10.75 per cent in FBs.