The Pakistan Credit Rating Agency (PACRA) has maintained the entity ratings of First Punjab Modaraba (FPM) at “A” (Single A) and “A1” (A one) for the long-term and short-term respectively. These ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.

FPM's ratings reflect its good asset quality and largely sustained performance from core operations. The ratings also take into account the management's strategy for leveraged volume expansion and diversification of the financing portfolio. The management, at the same time, is cognizant of risks arising from its rapid growth stance and is, therefore, continuously improving its control systems.

About the Modaraba: Established in 1992, FPM is a perpetual, multi-purpose Modaraba, listed on the Karachi, Lahore and Islamabad stock exchanges. Punjab Modaraba Services (Pvt) Ltd – a wholly owned subsidiary of The Bank of Punjab – holding around 38% stake in the Modaraba manages the Modaraba. The Bank of Punjab was established towards the end of 1989 under the Bank of Punjab Act, with its head office in Lahore. It is a large commercial bank in which the Government of Punjab holds majority stake. The Modaraba is primarily engaged in morabaha and lease financing and operates from a single location in Lahore. The Modaraba is targeting an aggressive growth by identifying new market niches, thereby providing facilities to consumer and SME sectors. To facilitate the future growth it plans to improve its geographical outreach. These reforms are expected to diversify the Modaraba's customer and product base going forward.