Pakistan Credit Rating Agency Limited reaffirms preliminary rating of proposed TFC by NIB Bank Limited

Lahore, April 18, 2014 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has reaffirmed preliminary rating of ‘A+’ (Single A plus) to the proposed listed, unsecured, and subordinated TFC issue of up to PKR 5,000mln (including up to PKR 1,000mln green shoe option) by NIB Bank Limited (NIB). This rating denotes a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

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 standalone basis, the management has managed to bring recovery in the Bank’s financial profile. Recognizing the non-performing loans as a key challenge, also carrying revenue drag, an aggressive recovery drive is being pursued.

The ensuing reversals are likely to support profitability, which has also observed uptick through different efficiency measures. The management is re-aligning its business strategy in line with prevailing market dynamics. This includes channelizing the branch network for deposit mobilization, cautiously growing advances and cultivating sustainable non-fund revenue streams.

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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The post Pakistan Credit Rating Agency Limited reaffirms preliminary rating of proposed TFC by NIB Bank Limited appeared first on AsiaNet-Pakistan.

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