has assigned rating of [ICRANP-IR] AA- (pronounced ICRA NP Issuer Rating double A minus) to Nabil Bank Limited (NABIL)
.The rated entity carries low credit risk.
The entities with [ICRANP-IR] AA- rating are considered as high-credit quality rating assigned by ICRA Nepal.
According to a statement of ICRA Nepal, The assigned rating takes into account NABIL’s good market position (largest private sector commercial bank in Nepal as per assets base as on mid-Jan-16) emanating from its long track record (operating since 1984) and good franchise , its healthy profitability , adequate capitalization and comfortable solvency profile .The rating also factors in NABIL’s diversified earnings profile, low cost of funds supported by healthy deposit profile ,and experienced management team.
“The rating however is constrained on account of high deposit and credit concentration (~32% and ~21% among top 20 accounts on mid Jan-16). NABIL also has large foreign currency deposits (~20% of total deposits as on mid Jan-16), a significant part is being held for single client (around 9% of total deposit) which is subject to outflows at a short notice.” reads the statement of the ICRA.
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