The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (17-June-2005)
    PACRA Upgrades Entity Ratings of The Bank of Punjab (BoP)
 

 
Analyst
Ambreen Irfan
(+92-42-586 9504)
ambreen@pacra.com

 

 

 











 

 

 

 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

PACRA has upgraded the long-term rating and short-term rating of The Bank of Punjab to “AA-” (Double A Minus) and “A1+” (A One Plus) respectively. These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings are applicable to senior unsecured creditors (depositors) of the bank.

The ratings reflect the sustained strengthening of the equity base through organic growth and a stronger capital structure than most peers in terms of the proportion of Tier I Capital in the total assets despite a substantial expansion in the balance sheet size. The ratings also recognise the improving trend in performance with increasing contribution from core earnings. The management's ongoing programs for human resource development, upgradation of technology infrastructure, and a structured approach for improvement and efficacy of risk management policies and systems augur well for the bank's future prospects.

About the bank: The Bank of Punjab was established under the BoP Act 1989. The bank is currently operating with a 253 branch network concentrated in the province of Punjab. The management is currently expanding this network to other provinces, mainly NWFP and Karachi.

BoP is principally involved in short-term lending and providing other general banking services. The Board of Directors comprises eleven members, with seven nominees of the GOP and the rest elected by other shareholders. The current Managing Director, who took charge in May 2003, is serving on a five-year contract. The incumbent is a professional banker having extensive experience of banking in Pakistan and abroad. He is assisted by a team of experienced professionals.

The new Managing Director has succeeded in bringing about a change in the strategic focus of the bank's long-term policy objectives by capitalizing on BoP's potential strengths and eliminating some of its inherent organizational weaknesses. The success of his initiatives are demonstrated in the bank's flattering performance indicators.

 
 
The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity.

PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings.

PACRA's opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.

 

    
helmut newton