The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of KASB Bank Limited at “BBB+” (Triple B plus) and “A2” (A two), respectively. These ratings denote a low expectation of credit risk emanating from an adequate capacity for timely payment of financial commitments.

The ratings reflect the bank’s relatively subdued position in an increasingly competitive banking environment, mainly an outcome of its small size and limited franchise value. At the same time, the ratings recognize the strategy of the new management that envisions a broad-based aggressive expansion in the bank’s asset portfolio, but with focused products for different segments – corporate, SMEs and consumer – while capitalizing on the bank’s recently extended outreach. Meanwhile, the management is working in a structured manner to strengthen human and infrastructure resources to achieve the planned business growth. Nevertheless, with restricted internal generation, the bank would remain dependent on its sponsors’ support for meeting increasing capital requirements. The sponsors are committed to the bank and have recently demonstrated their support by injecting fresh equity to maintain the capital structure.

About the bank: KASB Bank Limited, incorporated in October 1994 and listed on all three stock exchanges, was acquired by KASB group and an Omani group in October 2002. The bank’s seven member Board of Directors comprises experienced professionals and is involved in the development of the bank’s strategy and monitors its execution. In the past, the bank faced problems in building and afterward ensuring continuity of the senior management team. The current chief executive, Mr. Muneer Kamal, an experienced banker with a distinguished profile, was inducted in November 2005. He has assembled a core team of experienced professionals for ensuring effective implementation of the newly chalked business strategy.