By Sandeep Chaudhary
Standard Chartered Nepal Highest CAR Lowest NPL?
Among Nepal’s commercial banks, Standard Chartered Bank Nepal Limited (SCBNL) stands out as a rare case of global discipline in local banking. The bank has consistently maintained the highest Capital Adequacy Ratio (CAR) of 17.82% as of mid-July 2025 (Asadh 2082), far exceeding the regulatory minimum and even the average for private peers. This reflects its robust capital buffer, which allows the bank to absorb shocks, meet international Basel standards, and maintain investor confidence.
On the risk side, SCBNL also demonstrates exceptional asset quality. Its gross NPL is just 1.47%, while the net NPL is an impressive 0.29%, the lowest in Nepal’s banking industry. This indicates not only careful lending practices but also strong recovery mechanisms and minimal credit risk exposure. Unlike aggressive local banks that chase loan growth, Standard Chartered maintains a conservative loan portfolio—Rs. 88,520 million against deposits of Rs. 127,408 million—resulting in a CD ratio of 70.50%, well below sector averages.
While this conservative stance may limit short-term profitability compared to expansionist peers, it strengthens the bank’s resilience, liquidity (46.33%), and compliance with NRB requirements. Its spread rate of 3.53% is moderate, showing a balance between earnings and fair pricing. Moreover, with productive sector lending at 33.08%, SCBNL is meeting NRB’s targets, though its agriculture lending at 0.29% remains very low, highlighting its corporate-focused approach rather than inclusive rural finance.
