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Companies tend to 'boast' their earning the quarter before floating IPO. I think same with Century. It will be interesting to see the report AFTER floating the IPO.

"Thus, the Grading of 2+, 3+ and 4+ are
one notch higher than 2, 3, and 4, respectively." I would presume this means 4+ would be between 3 and 4, this I find bit confusing.

Anyway from the report


"The grading is constrained by CCBL‟s limited track record, lack of diversity in earnings, low
seasoning of credit book and inferior deposit profile compared to class „A‟ banking industry systemic
average, low profitability, competition from other commercial banks and uncertain operating
environment that banks in Nepal are currently facing. The grading is also constrained by absence of
institutional promoter support. Nonetheless, the grading factors in the bank being a class „A‟
commercial bank, lower exposure to real estate sector compared to systemic average and
comfortable assets quality indicators so far. Going forward, CCBL‟s ability to grow profitability,
maintain its assets quality indicators, improve deposit profile and increase its client base/ presence
judiciously would have a bearing on the overall financial profile.

Net interest income (NII) of CCBL stood at NRs.308 million in FY2012-13 (annualized increase of
165% compared to FY12 levels), driven by increase in scale of operations. Operating expenses of
the bank stood at NRs 257 million in FY2012-13 (annualized increase of 111% compared to FY12
levels). In FY12-13, supported by the benign interest rate environment wherein the bank was able to
garner significant call deposits at low rates that impacted the overall cost of funds of the bank
favourably, the bank reported improved-yet-modest Net Profits at NRs.66 million (compared to a
profit of NRs. 0.92 million in FY12). Over the medium term, the ability of the bank to build scale "

This bank being newest one expected to do worse than industry average (rating is probably based on respective industry average and does not compare a Commercial bank with a finance company) and Q1 report has been somewhat positive.

I agree with Dilbert saying. That's true.

baba ji is wrong.

ICRA rating is 1 as being very good and 5 being very bad.

So 4+ rating of Century is worse than 3 of SKBBL and 3+ of RMDC.

Since the ICRA rating was done for IPOs, Century has received the worse score.

http://www.icranepal.com/grading_ipo.php

No one in Nepal till now has got 4+ & above rating from ICRA
& ICRA dont give rating more than 4+ to a newly established company
Hence the rating seems to be reasonably ok...
moreover its profit of the previous quarter is greater than Civil bank

Guys check for IPO grading of Century Commercial Bank provided by ICRANEPAL in the following link:

http://icranepal.com/RecentReleases/Rationale_CCBL_IPO.pdf

Source: ICRA Nepal Limited (ICRA Nepal)

के हो यो "क" बर्गको बैन्कको ग्रेडिङ् पनि "घ" बर्गको बैन्कहरुको जति पनि छैन त हो साथीहरु ?