Lahore, October 17, 2018 (PPI-OT): The ratings capture strength of the bank as a growing institution in the Microfinance sector. Loan book is gradually building up. The bank’s business model incorporates appropriate controls to keep its risk profile sound. Asset infection ratio of the bank is currently NIL, but complying with the requirements of prudential regulations, the bank has recorded a general provision of 1%. Current design of the lending portfolio represents concentration in the flagship product “Sujag Aurat” (Visionary Women), focused on women entrepreneurship and financial inclusion.
Livestock loan is the next product in line. Funding is currently being fuelled through internal capital and sponsor support in the form of borrowings. The bank’s focal strategy is pivoted around Sindh with plans to go national. Going forward, the bank eyes on raising funds from various channels to expand its business volume. The bank’s financial profile attracts comfort from its association with the Government of Sindh. Investments in non-earning assets is low. Liquidity profile is reflected by saving deposits and TDRs placed with financial institutions.
The ratings are dependent on the bank’s ability to sustain its growth trend in the MFBs market. Seamless governance practices are important. The ratings would also take into consideration funding strategies adopted by the management to fuel growth in the lending portfolio. Meanwhile, maintenance of asset health is of significance.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com