Pakistan Credit Rating Agency Limited Assigns Positive Outlook to Ratings of APNA Microfinance Bank Limited

Lahore: The Pakistan Credit Rating Agency (PACRA) has maintained long-term and short-term entity ratings of Apna Microfinance Bank Limited (AMBL), previously known as Network Microfinance Bank Limited, at “BBB” (Triple B) and “A3″ (A Three), respectively. Meanwhile, a “Positive Outlook” has been assigned to these ratings. These ratings denote an adequate capacity of timely payment of financial commitments.

The ratings of AMBL reflect adequately designed business plan to initiate operations afresh subsequent to recent change in ownership. The new sponsors are committed to build the bank around sound infrastructure while gradually expanding nationwide – also injecting additional equity of above PKR 1,000 mln. The focus would be on semi-urban and rural areas to serve agriculture and allied community alongwith traditional micro borrowers. An experienced senior management team has been engaged by the bank.

The new management is working on a product expansion and rebranding strategy with a complete review of business acquisition and servicing practices. Meanwhile, process for development of operational infrastructure supported by sound technology framework is in place. However, given persistent challenges for Microfinance Industry, the extent to which the management succeeds in effectively materializing its strategy and achieves the desired results remains to be seen.

Meanwhile, developing strong governance structure is important. The ratings are assigned a positive outlook recognizing the benefits to accrue from expanded equity base, improved organizational structure, new strategic business initiatives, and implementation of effective risk management framework.

For more information, contact:
Hammad Rashid
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

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