KATHMANDU: Credit rating agency ICRA Nepal has published a detailed analysis of the credit rating transitions of major Nepali commercial banks over the past five fiscal years, covering the period from 2022 to 2026.
The data show varying trends in the financial health and risk profiles of commercial banks during the period.
Standard Chartered maintains highest rating
According to ICRA Nepal, Standard Chartered Bank Nepal has maintained an IR AAA rating consistently throughout the five-year period, indicating a very strong credit profile and the lowest level of credit risk among the banks covered.
Nepal SBI Bank also maintained its IR AA rating throughout the review period.
However, the ratings of some established banks have declined in recent years.
Nabil Bank’s rating declined from IR AA- in 2022 to IR A in 2026. Global IME Bank has also experienced fluctuations in its rating and currently holds an IR A- rating.
The data also show notable declines in the ratings of Prabhu Bank and Kumari Bank. Prabhu Bank’s rating has fallen to IR BB+@, while Kumari Bank’s rating stands at IR BB+.
Some banks withdraw from rating process
The report states that some banks have discontinued or withdrawn from ICRA Nepal’s rating process.
Everest Bank withdrew from the rating process in 2026 after holding an IR AA- rating. Similarly, the ratings of Sanima Bank, NIC Asia Bank and Agricultural Development Bank have also been withdrawn in recent years.
Nepal Bank Limited has maintained an IR A rating throughout the past five years.
Nepal Investment Mega Bank currently holds an IR A- rating, while Laxmi Sunrise Bank and Siddhartha Bank have ratings of IR BBB@ and IR BBB+, respectively.
Machhapuchchhre Bank currently holds an IR BBB+@ rating for 2026.
ICRA Nepal uses special symbols alongside some ratings to provide additional information about a bank’s credit profile. The “@” symbol indicates that a rating is under negative watch and that the institution’s credit profile is facing stress.
The “&” symbol indicates an uncertain outlook associated with a merger or acquisition.
ICRA Nepal said the report covers the live ratings of 13 of the 20 commercial banks currently operating in Nepal.
The rating details of several banks, including Himalayan Bank, Prime Commercial Bank and Rastriya Banijya Bank, have not been included in the list.
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