24th March 2024, Kathmandu
Standard Chartered Bank Nepal Limited (Highest AAA Rating) proudly announces the reaffirmation of its AAA rating by ICRA Nepal for the fifth consecutive year. This distinguished rating underscores SCBNL’s status as the safest banking institution in Nepal, setting a benchmark for excellence in the industry.
The AAA rating reflects ICRA Nepal’s confidence in SCBNL’s robust capitalization profile, with a Capital Risk-Weighted Assets Ratio (CRAR) of approximately 16%, well above the regulatory minimum. Additionally, SCBNL boasts a tier-I capital of around 13%, ensuring ample buffers against financial risks.
One of the bank’s standout strengths is its impeccable asset quality, with non-performing loans (NPLs) standing at a commendable 1.60%, significantly lower than the industry average. Despite recent economic challenges, SCBNL has maintained stringent underwriting norms and effective risk management practices, bolstering its resilience against adverse market conditions.
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Furthermore, SCBNL’s superior funding profile, characterized by a healthy mix of low-cost deposits, reinforces its competitive edge. With approximately 65% of its deposits comprising current savings accounts, margin, and call deposits, SCBNL maintains the lowest cost of funds in the industry.
The bank’s profitability indicators remain robust, with healthy returns on assets (ROA) and net worth (RoNW) of 2.32% and approximately 11%, respectively, in the first half of fiscal year 2024. SCBNL’s consistent focus on prudent financial management and customer-centric strategies continues to drive its success in the market.
While SCBNL faces challenges such as portfolio concentration risks and evolving regulatory dynamics, its proactive approach and adherence to global best practices position it well to navigate uncertainties.
SCBNL
As SCBNL continues its journey of excellence, maintaining a comfortable capitalization profile and sustaining high asset quality will remain key focus areas. With its steadfast commitment to innovation, reliability, and customer satisfaction, SCBNL reaffirms its position as the leading financial institution in Nepal.
