Standard Chartered Bank Nepal reaffirmed with AAA Rating for 5th time

Kathmandu: ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] AAA to Standard Chartered Bank Nepal Limited (SCBNL) for the fifth consecutive year.

The rating is considered to have the highest degree of safety regarding the timely servicing of financial obligations, such issuers carry the lowest credit risk.

In the rationale statement, ICRA Nepal states, ‘The rating reaffirmation factors in the bank’s sustained strong capitalization profile with capital to risk-weighted assets ratio (CRAR) of ~16% and tier-I capital of ~13% as of mid-January 2024 against the regulatory minimum of 11% and 8.5%, respectively. The rating also factors in the bank’s robust asset quality with reported gross non-performing loans (NPLs) of 1.60% as of mid-January 2024, which remains much lower as against the commercial banking industry average of 3.63%, despite the recent increase (NPLs were 0.72% as of mid-January 2023 when last rated).’

‘The rating action also continues to factor in the bank’s long track record of operations (since 1987) and its strong parentage (~70% subsidiary of the Standard Chartered Group) along with the Group’s management/oversight support. The bank’s healthy deposit profile with a relatively high share of low-cost deposits has resulted in the bank maintaining the lowest cost of funds in the industry, which remains a major strength. The rating further continues to factor in SCBNL’s competitive positioning underpinned by its global brand reputation and competitive cost of funds,’ is mentioned in the statement.

Anirvan Ghosh Dastidar, CEO of Standard Chartered Bank Nepal Limited, said, ‘The reaffirmation of AAA rating for five years in a row is a strong validation of our commitment towards our clients and all our stakeholders. We thank everyone for making this possible.’

Standard Chartered Bank Nepal Limited (SCBNL)
The Bank enjoys the status of the only international bank currently operating in Nepal. It is also the only Bank in Nepal accredited with an ICRANP-IR AAA rating by ICRA Nepal as the safest bank concerning timely servicing of financial obligations. The Bank reaffirmed the AAA Rating for the fifth time.

SCBNL is a leading international banking group, with a presence in 60 of the world’s most dynamic markets and serving clients in a further 85.

The purpose of SCBNL is to drive commerce and prosperity through our unique diversity and our heritage and values are expressed in our brand promise, here for good. SCBNL is listed on the Nepal Stock Exchange.