ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] AAA to Standard Chartered Bank
Nepal Limited (SCBNL) for the sixth consecutive year. The rating is considered to have the highest
degree of safety regarding the timely servicing of financial obligations. Such issuers carry the
lowest credit risk.
In the rationale statement, ICRA Nepal states, “The rating reaffirmation factors in the Bank's
sustained strong capitalisation profile with capital to risk weighted assets ratio (CRAR) of 17.44%
and tier-I capital of 15.15% as of mid-April 2025, against the regulatory requirement of 11% and
8.5%, respectively. The rating also factors in the Bank’s robust asset quality with reported gross
non-performing loans (NPLs) of 1.44% as of mid-April 2025, which remains much lower as against
the “A Class” commercial banking industry average of 5.05%. SCBNL's strong underwriting
norms, robust risk management practices and its competitiveness in terms of the ability to offer
finer lending rates continue to offer comfort against the Bank's incremental asset quality outlook,
despite the ongoing asset quality pressures across the industry.”
The rating action also continues to factor in the Bank's long track record of operations (since
1987) and its strong parentage (~70% subsidiary of the Standard Chartered Group) along with

the group's oversight support. The Bank's healthy deposit profile with relatively high share of low-
cost deposits has resulted in the Bank maintaining lowest cost of funds in the industry, which

remains a major strength. The rating further continues to factor in SCBNL’s competitive
positioning underpinned by its Global Brand reputation and adequate profitability indicators.”
Gorakh Rana, CEO & Head of Coverage, Standard Chartered Bank Nepal Limited, remarked,
“The reaffirmation of our AAA rating for the sixth consecutive year stands as a clear testament to
the enduring strength and consistency of our commitment to delivering exceptional value to our
clients and stakeholders. It is a reflection of the trust placed in us and the unwavering dedication
of our entire team. We extend our sincere gratitude to our clients and stakeholders who have
contributed to our continued success.”