The Pakistan Credit Rating Agency Limited
23-Oct-23
Analyst
Uswa Sikandar
uswa.sikandar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
- Methodology | Financial Institution Rating | Jul-23
- Methodology | Rating Modifiers | Apr-23
- Methodology | Debt Instrument Rating | Aug-23
Related Research
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PACRA withdraws the Rating of JS Bank Limited | TFC II
| Issuer | JS Bank Limited |
| Instrument | TFC-II |
| Amount | PKR 2000 mln |
| Issuance Date | 29-Dec-17 |
| Tenor | 7 Years |
| Redemption Date | 29-Dec-24 |
| Outstanding Amount | - |
| Rating Type | Debt Instrument | |
|
Current (23-Oct-23 ) |
Previous (23-Jun-23 ) |
|
| Action | Redeem | Maintain |
| Long Term | - | A+ |
| Short Term | - | - |
| Outlook | Stable | |
| Rating Watch | - | - |
JSBL issued a Rated, Privately Placed/Listed, Unsecured, Subordinated TFC-II in Dec-17 of PKR 2,000mln to support Tier-II capital for complying with the Capital Adequacy Ratio (CAR) requirement prescribed by the State Bank of Pakistan. The tenor of the instrument was 7 years and it carried a profit rate of 6MK+ 140bps. Since the Bank had the right of call option on/after five years of the issuance subject to the approval from SBP, it exercised the call option on 04-Aug-23 and paid in full, all the markup and outstanding principal amount.
Subsequent to the redemption of the JSBL | TFC-II, the Pakistan Credit Rating Agency (PACRA) has withdrawn the rating of JSBL | TFC-II.
About
the Entity
JS Bank Limited (JSBL), incorporated in March 2006, commenced its banking operations on December 30, 2006. JSBL is a subsidiary (71.21%) of Jahangir Siddiqui and Co. Limited (JSCL). Randeree Family holds 11.92% of the stake through Mr. Shabir Ahmed Randeree and Mr. Ahmed G.M. Randeree while the remaining stake is widely spread. The overall control of the bank vests in the Board of Directors (BoD) including the CEO. Mr. Basir Shamsie was designated as CEO in July 2018. He possesses work experience of more than 29 years, primarily in the banking sector. He is supported by a team of highly qualified and seasoned professionals.