ICRA Nepal gives ‘moderate credit quality’ rating to NB Bank;to float debenture of Rs 500 million.

ShareSansar, July 19:

Nepal Bangladesh Bank Limited (NBB) has got ICRA Rating of LBBB -, which indicates at the banks adequate- moderate credit quality assigned by ICRA Nepal. The rated entity carries moderate credit risk.

NB Bank is planning to float debenture of NPR 500 million.

According to a statement of ICRA Nepal, it has assigned ‘(ICRANP)’ LBBB-(pronounced ICRA NP L triple Bminus) to the Debenture of Nepal Bangladesh Bank which means that the offering holds moderate credit quality. Such instruments carry moderate credit risk.

“The rating is also constrained by NBBL’s moderate franchiseleading to lower market share with 1.91% share in Nepalese banking sector credit on mid-April-15 despite long track record, expected stress in the assets quality in post-earthquake scenario,” reads the statement of the ICRA.

Nepal Bangladesh Bank had posted net profit of Rs.513.07 million in its third quarterly financial statement of the fiscal year 2071/72.