The rating is based on good market position of NIBL, and its track record of boosting its balance sheet while maintaining a stable earning profile thanks to an experienced management team.
"Despite stiff competition, NIBL has maintained a healthy market share of about 8 per cent and 10 per cent in terms of deposit and loans and advances, respectively. Moreover, the growth rate of NIBL has been impressive," said Prithivi Pandey, chairman and chief executive officer of NIBL.
It achieved a relatively higher deposit growth of 41 per cent and 36 per cent in 2007-08 and 200809. NIBL, which also has the largest credit portfolio of Rs 36.2 billion among commercial banks in Nepal till mid-July 2009, recorded a strong four-year Cumulative Average Growth Rate (CAGR) of 37.5 per cent in lending from Rs. 10.1 billion mid-July 2005.
NIBL has delivered good and stable profitability and net interest margin over the years with low operating expenses.
Regulatory capital adequacy ratio of 11.24 per cent as of midJuly 2009, with a Tier I capital ratio of 8.56 per cent coupled with NPA of 0.58 per cent in mid-July 2009 and provision coverage of over 90 perc cent demonstrates the sound health of NIBL.
ICRA's Rating Scale for Issuers/Instruments in Nepal is (Nepal) AAA -- the highestcredit-quality rating relative to other domestic issuers, (Nepal) AA: High-credit-quality rating relative to other domestic issuers, (Nepal) A: Adequatecredit-quality rating relative to other domestic issuers, (Nepal) BBB: Moderate-credit-quality rating relative to other domestic issuers, (Nepal) BB: Inadequatecredit-quality rating relative to other domestic issuers, (Nepal) B: Risk-prone-credit-quality rating relative to other domestic issuer, (Nepal) C: Poor-credit-quality rating relative to other domestic issuers and (Nepal) D: Lowestcredit-quality rating relative to other domestic issuers.
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