NIBL first bank to get A in credit rating

Nepal Investment Bank Limited (NIBL) has become the first bank in Nepal's banking history to receive the investment grade rating of [Nepal] A from the Indian Credit Rating Agency (ICRA), an associate of Moody's Investors Service. The rating for issuers in Nepal is assigned on a scale which ranges from [Nepal] AAA to [Nepal] D. 

The rating is based on the good market position of NIBL in Nepal, its track record of expanding its balance sheet while maintaining a stable earning profile and its experienced management team, states a press release of the bank.

Despite stiff competition, NIBL has maintained a healthy market share of about 8 percent and 10 percent in terms of deposits and loans and advances respectively. Moreover, the growth rate of NIBL has been impressive. It achieved a relatively higher deposit growth of 41 percent and 36 percent in 2007/08 and 2008/09.

NIBL, which also has the largest credit portfolio of Rs. 36.2 billion among the commercial banks in Nepal as of mid-July 2009, has recorded a strong four-year cumulative average growth rate (CAGR) of 37.5 percent in lending from Rs. 10.1 billion in 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 percent as of mid-July 2009, with a Tier I capital ratio of 8.56 percent coupled with NPA of 0.58 percent as of mid-July 2009 and provision coverage of over 90 percent demonstrates the sound health of NIBL. NIBL has a presence throughout the country through its 32 branches and 60 ATMs (150 ATMs including consortium member ATMs).

Source:
ekantipur