CARE Ratings Nepal assigns CARE-NP A to NIC ASIA Bank indicating adequate degree of safety
Thu, Mar 29, 2018 7:21 AM on Latest, Featured, Credit Rating, Stock Market,
CARE Ratings Nepal Limited has assigned Issuer Rating of CARE-NP A (Is)‟ to NIC Asia Bank Limited (NIC Asia). CARE-NP A (Is) indicates Issuers with this rating are considered to offer adequate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry low credit risk.
CRNL assigns Issuer Rating on a scale of CARE-NP AAA (Is) to CARE-NP D (Is). The rating is only an opinion on the general creditworthiness of the company and not specific to any particular debt instrument.
The rating assigned to NIC Asia derives strength from the long track of operations, experienced promoters and management team, adequate capitalization level & capital adequacy, geographical diversification through branches, consistent growth in loans & advances and deposits, considerable growth in total income and net profit over the period, good assets quality with declining Gross Non Performing Loans (GNPL) ratio, diversified loan portfolio with focus on retail and SME segments, improving CASA ratio, comfortable liquidity profile and declining deposits concentration & moderate advances concentration.
The rating, however, is constrained by declining return on total assets (RoTA), increasing operating expenses, intense competition and exposure to regulatory risk related to industry.
Ability of the company to continue its growth momentum without compromising on asset quality and maintaining capital adequacy and ability to manage the impact of any regulatory changes by Nepal Rastra Bank (NRB) would be the key rating sensitivities.
