Karachi: JCR-VIS Credit Rating Co Ltd. has reaffirmed the medium to long-term and the short-term rating of The Bank of Khyber (BoK) at ‘A-’ (A Minus) and ‘A-2’ (A-Two), respectively. Outlook on the ratings is ‘Positive’.
The process of equity injection by the government of Khyber-Pakhtunkhawa (GoKP) to meet the Minimum Capital Requirement (MCR) was completed in 2010. However, a formal rights issue is likely to be completed soon. Equity has provided the bank with the necessary impetus for growth. BoK depicted a considerable increase in asset size while mainly focusing towards lending activities. The expansion in branch network has not only helped in developing new business relations but also enhanced its ability to attract deposits.
BoK introduced improved guidelines for credit control along with tightening of monitoring systems. However, quality of new exposures will be tested over time. Given the expansionary strategic plan, the bank is acquiring an integrated ERP system that would help in leveraging its position as a mainstream bank. Accordingly, HR is actively engaged in hiring/training staff members that could support the growth trajectory of the bank. JCR-VIS would monitor BoK’s growth against plans and developing trends in the quality of business underwritten.