Nabil Bank Limited Reaffirms Class A Trust as ICRA Nepal Lifts Negative Implications Watch

21st June 2026, Kathmandu

Nabil Bank Limited has achieved a critical milestone after credit rating specialist ICRA Nepal officially reaffirmed its default issuer credit rating.

Nabil Bank Maintains A

The specialized surveillance review confirmed that the bank maintains its stable investment grade position, completely eliminating previous negative watch designations that had been placed due to capital tightening cycles. The updated rating agency report highlights structural recovery patterns, enhanced balance sheet control, and a steady decline in delinquent financial exposure. By maintaining a highly secure position despite competitive domestic pressures, the financial group reinforces its foundational standing as an elite commercial lender nationwide.

Summary of Reaffirmed Credit Designations, Capital Ratios, and Footprint Parameters

The institutional validation follows specific statistical criteria verified across the active asset portfolios of the commercial bank.

• Evaluating Rating Authority: ICRA Nepal Limited
• Primary Issuer Credit Rating: Reaffirmed at [ICRA NP-IR] A
• Subordinated Debt Valuation: Reaffirmed at [ICRA NP] L A for 4 Billion Nepalese Rupees in debentures
• Watch List Modification: Officially removed from Watch with Negative Implications
• Verified Capital Milestone: Primary tier-one capital ratio rising significantly to 9.69 percent
• Asset Restructuring Catalyst: Issuance of 50 Billion Nepalese Rupees in perpetual non-cumulative preference shares
• Domestic Market Segment Presence: 8.1 percent share of total deposits and 9.0 percent share of total commercial lending
• Active Operational Service Points: 268 branch networks, 18 extension counters, and 318 automated teller machines

Analyzing the Preference Share Capital Injection and Regulatory Capital Safeguards

The primary catalyst driving the removal of the negative watch designation stems from a major strategic equity expansion engineered by the board of directors.

In previous evaluation cycles, continuous credit distribution paired with mandatory tax obligations on bargain purchase gains had lowered the tier-one capital cushion close to the regulatory limits set by the central bank. To solve this problem, Nabil Bank executed a massive issuance of fifty billion Nepalese Rupees in perpetual non-cumulative preference shares, boosting its capital baseline well above the minimum state requirements. This structural capital increase provides an excellent safety layer to back future corporate loans, protects long-term equity valuations, and allows the entity to absorb unexpected commercial shocks without facing capital conservation challenges.

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Noteworthy Progress in Delinquency Recovery and Asset Quality Indicators

Beyond stabilizing its capital reserves, the bank demonstrated major operational improvements in reducing past-due loan exposure.

Detailed performance analysis indicates that loans facing any form of payment delays fell from a high of twenty-nine percent down to approximately twenty-two percent, showcasing an aggressive and highly effective loan recovery campaign across provincial zones. Concurrently, the ratio of net non-performing loans relative to total institutional net worth dropped from twelve percent down to around seven percent. These combined metrics show that the bank is modernizing its underwriting parameters, using strict monitoring systems for high-value corporate loans, and actively clearing legacy liabilities inherited from previous acquisitions.

Long Term Strategic Consolidation and Market Leadership Goals

As one of the oldest and largest private financial institutions operating since 1984, the bank benefits from a highly trusted brand image and a diversified retail base.

The high proportion of stable current and savings accounts helps lower overall funding costs, giving the bank a competitive advantage over smaller institutions under the standard base rate lending models used in Nepal. With an expansive nationwide service network spanning over two hundred and sixty locations, the group remains positioned to capture rural savings and finance large-scale infrastructure projects. This positive rating verification protects depositor security, enhances investor confidence on the local stock market floor, and ensures that Nabil Bank Limited continues to lead sustainable financial innovations across all provinces of Nepal.

For More: Nabil Bank Maintains A