The Pakistan Credit Rating Agency (PACRA) has assigned a long-term rating of “A-” (A minus) and a short-term rating of “A2” (A Two) to Mybank Limited (ML). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect the management’s well-conceived business strategy to improve its financial profile and performance prospects. The strategy envisages leveraging the branch network both for deposit mobilization and credit expansion. To ensure success of the proposed strategy, the management is putting in place the requisite infrastructure including advanced IT platform, recruitment of high calibre individuals, establishment of proper set of systems and controls, and building franchise value. Meanwhile, the bank’s capitalization is expected to remain robust given the sponsor’s commitment to inject equity in order to meet prudential requirements. However, being a relatively smaller sized bank with limited franchise value, ML is placed at a disadvantage in competing against the better-known and larger sized banks in the fast changing dynamics of the banking sector.

About the bank: Mybank Limited (formerly Bolan Bank Limited, name changed in May 2005) commenced its operations in October 1992 as a scheduled commercial bank and is listed on the Karachi and Lahore Stock Exchanges.

In March 2004, the controlling interest (51%) of the bank was acquired from the sponsoring directors by Mr. Iqbal Alimohamed and family, an eminent name in business and industry. Mr. Alimohamed, formally the CEO and Chairman of Gul Ahmed Textile Mills Limited (1985-2002), is the chairman of the bank and is a chartered accountant by profession.

Apart from sub-committees of the board, directors have delegated day-to-day management of the affairs of the bank to the management and are not part of any management committee. The president, Mr. Muhammad Azimuddin, who joined the bank in Dec-04 has 23 years of experience in premier local and multinational institutions. Under his leadership, the new management has identified areas of concern and the focus has, therefore, been on institutional building and infrastructure development.