Kamana Sewa Bikas Bank's Issuer Rating Upgraded to 'CARE-NP BBB- (Is)'
CARE Ratings Nepal has upgraded Kamana Sewa Bikas Bank's issuer rating from 'CARE-NP BB+ (Is)' to 'CARE-NP BBB- (Is)'. The upgrade, based on strengthened capital funds, improved loan quality, and profit growth, further reinforces stakeholder confidence in the bank.
Kathmandu | CARE Ratings Nepal Limited has upgraded the issuer rating previously assigned to Kamana Sewa Bikas Bank Limited from 'CARE-NP BB+ (Is)' to a new issuer rating of 'CARE-NP BBB- (Is)'.
According to the rating agency's definition, institutions receiving a 'CARE-NP BBB- (Is)' rating are considered to offer a moderate level of protection regarding timely payment of financial obligations and to carry a moderate level of credit risk.
The rating agency based the upgrade on factors including the strengthening of the bank's capital funds, improvements in loan quality management, an experienced board of directors and management team, improved profitability, business growth, improvement in the deposit structure, strong liquidity, and market share.
The full definition of the rating assigned to the bank is available on the website of CARE Ratings Nepal, www.careratingsnepal.com. The rating can also be viewed in the document Kamana_Sewa_Bikas_Bank_Limited_-_Issuer_Rating_Revised.pdf.
This rating upgrade further strengthens the confidence of depositors, borrowers, shareholders, investors, regulatory bodies, and all stakeholders in the bank, and confirms the bank's commitment to financial strength and sound corporate governance.
The bank believes this will also further support it in mobilizing resources at competitive costs and in expanding institutional deposits and business partnerships.
In line with its 'Future Ready' concept, the bank has been emphasizing long-term institutional strengthening and business expansion through safe, responsible, technology-friendly, and sustainable banking practices.