Lahore, June 27, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of NIB Bank Limited (NIB) at “AA-” (Double A Minus) and “A1+” (A One Plus), respectively. These ratings denote a very low expectation of credit risk. The rating of the listed, unsecured, and subordinated TFC issue of PKR 4,198mln has been maintained at “A+” (Single A Plus).
The ratings reflect NIB’s association with Temasek Holdings – the investment arm of Government of Singapore, internationally rated AAA. The ratings draw material comfort from historically demonstrated commitment of Temasek towards NIB.
On a standalone basis, the management’s focused strategy is bearing fruits reflected in the improving financial profile of the Bank. Recognizing the non-performing loans as a key challenge, also carrying revenue drag, an aggressive recovery drive is being pursued. The ensuing reversals are supporting profitability, which has also observed uptick through different efficiency measures.
The management, while offering a complete product suite, intends to establish an efficient bank with strategically located footprint as against expanded branch network. The strategy includes channelizing the branch network for deposit mobilization, cautiously growing advances, and cultivating sustainable non-fund revenue streams.
For more information, contact:
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
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