Lahore, March 25, 2016 (PPI-OT):The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Waseela Microfinance Bank Limited (Waseela Bank) at “A-” (Single A Minus) and “A2” (A Two), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings reflect Waseela Bank’s association with a leading global telecom group – Vimplecom and with Pakistan’s largest cellular operator – Mobilink. The business strategy of the bank is to synergize Mobilink’s established franchise to build foothold in expanding branchless banking (BB) – through Mobicash, Waseela’s BB brand. Regarding microfinance business, the bank is progressively building its loan book. So far, overall asset quality is good.
Deposit mobilization remains a challenge; however, growing BB operations are providing support – deposits from BB represented ~50% in total at end-Dec15. The bank is yet to achieve stability in its performance. The bank aims aggressive growth in its branch operations; 13 new branches are planned in CY16 with a beefed up sales team. Deposits and advances are targeted to increase at a faster pace. Given competitive landscape, effective execution of business strategy and cohesiveness in management team are important factors.
The ratings are dependent on the bank’s ability to sustain improving trend in its market position while ensuring stable growth in newly built revenue streams. Given growing loan book, related risks mainly credit quality need close monitoring.
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