Care Ratings assigns top issuer rating to Everest Bank Limited indicating very low credit risk

CRNL has assigned the issuer rating of “CARE-NP AA-(Is)” to Everest Bank Limited (EBL). Issuers with this rating are considered to offer high degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry very low credit risk.

The rating assigned to EBL derives strength from the long track record of the bank backed by institutional promoter, experienced directors and management team, strong capitalization level, diversified and geographical coverage through branches, consistent growth in deposits and advances and considerable growth in total income and net profit. The rating also factors in strong asset quality, lower cost of deposit in the industry, moderate liquidity profile, diversified loan portfolio with regulatory compliance, comfortable CASA ratio though declining over the period, diversified investment portfolio and good policies and management information system in place.

The rating is constrained on account of high concentration in borrowers and depositors, intense competition and exposure to regulatory risk related to industry. Ability of the bank to maintain stable growth along with maintaining asset quality and capital adequacy and ability to manage the impact of any regulatory changes by Nepal Rastra Bank (NRB) would be the key rating sensitivities.

Source: Care Ratings Nepal