Kathmandu: ICRA Nepal has upgraded the issuer rating of NMB Bank Limited (NMB) from [ICRANP-IR] A- to [ICRANP-IR] A indicating an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.
ICRA Nepal Limited, the first credit rating agency of Nepal and licensed by the Securities Board of Nepal (SEBON), is a subsidiary of ICRA Limited (ICRA) of India.
The rating upgradation factors in the bank’s ability to successfully consolidate its business following a series of mergers/acquisitions, as reflected in the recent improvement in asset quality and delinquencies, the bank said in a press release.
In the past few years, the bank has improved its market positioning through a strong branch network, adequate market share and large customer base across the country while improving the portfolio granularity in the process, reads the release.
The bank continues to maintain a comfortable capitalization and liquidity position that makes it better positioned to handle credit/liquidity shocks. The upgradation has also derived comfort from the bank’s adequate track record, good ownership profile, experienced management team, and established underwriting and risk management practices, according to the bank.
The upgrade is a testament to the bank’s exemplary track record and improvement in overall performance even when the economy is reeling under the impact of the Covid-19 pandemic, reads the release.
‘The Banker Magazine’ of The Financial Times, London, had awarded NMB Bank with the prestigious Bank of the Year Asia 2021. The bank has also been awarded Bank of the Year in 2017, 2018, 2020 & 2021. NMB Bank is currently providing its services through 201 branches, 138 ATMs, and 11 extension counters.