Standard SCB Chartered Bank Nepal Secures ‘Triple A’ Rating for the Sixth Consecutive Year
Author
NEPSE trading
Strong Capital Base, Low Risk, and Market-Leading Cost of Funds Highlighted
Standard Chartered Bank Nepal Limited has once again secured the highest credit rating of ‘Triple A’ (AAA) from ICRA Nepal, marking its sixth consecutive year of receiving the top-tier rating. This rating reflects the bank’s strong financial discipline, timely debt servicing capacity, and robust asset quality.
According to ICRA Nepal, as of mid-April 2025, the bank’s capital adequacy ratio stood at 17.44% based on risk-weighted assets, and the core capital ratio was 15.15%. These are significantly above the regulatory minimums set by Nepal Rastra Bank at 11% and 8.5%, respectively.
The rating agency stated, “Despite increasing pressure on asset quality across the banking industry, Standard Chartered Bank Nepal has maintained strong financial health and stability.”
The bank’s Non-Performing Loan (NPL) ratio is only 1.44%, significantly lower than the average NPL ratio of 5.05% for other commercial banks during the same period. This demonstrates the bank’s effective credit risk management and recovery processes.
Furthermore, the bank boasts the lowest cost of funds in the banking sector, giving it a competitive edge in providing low-interest loans.
Standard Chartered Group holds a 70% stake in the bank, which has been operating in Nepal since 1987. The bank also undergoes regular oversight and compliance checks from its international parent group, ensuring adherence to global banking standards.
This consistent performance and high rating not only reinforce trust in the bank’s operations but also indicate a favorable outlook for foreign investment confidence in Nepal’s banking sector.
