Lahore, June 30, 2014 (PPI-OT): The Pakistan Credit Rating Agency Limited (PACRA) has maintained long term and short term entity ratings of The Bank of Khyber [BoK] at ‘A’ (single A) and ‘A1′ (A One), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings, in addition to the association of the bank with Government of Khyber Pakhtunkhwa (GoKP), reflect BoK’s strong liquidity and high capital adequacy, supplemented by sustained profitability. The bank’s management is making continuous efforts to develop access to a broad based depositor profile and improve cost of deposits.
The bank still has reliance on large ticket deposits from GoKP and its related agencies. However, concentration risk is mitigated by stability in such deposits over time. Recent growth in advances was mainly manifested in commodity financing to GoKP.
Meanwhile improving asset quality, technology integration, and consistent improvement in bottom-line remained in focus. However, with desired credit growth, strengthening management information systems, in turn, control mechanism is to be strengthened.
The ratings are dependent on the bank’s ability to improve its competitive position while implementing its envisaged strategy. Meanwhile, any significant infection in asset quality and/or political intervention compromising the governance standards would impact negatively.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
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Category: General Business News