Press Release
JCR-VIS reaffirms Entity Ratings of Khushhali Bank Limited
Karachi, November 12, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the medium to long term entity rating of Khushhali Bank Limited (KBL) at ‘A’ (Single A) and short term rating at ‘A-1’ (A-One) with a ‘Stable’ Outlook, upon conclusion of the acquisition process led by UBL (United Bank Limited). Previously, the ratings were placed under ‘Rating Watch-Developing’ status.
Subsequent to the change in shareholding structure, the Board of Directors has been reconstituted. With ownership now concentrated with the UBL led consortium, a coherent strategy is likely to be observed. The bank has already initiated loan recoveries through UBL’s Omni platform and further synergies may also emerge over time. Meanwhile, long association of the senior management team with considerable experience and professional expertise would help in steering the bank towards targeted business growth, going forward.
The deposit base of the bank expanded considerably during 9MFY12 and increase was manifested in saving and term deposits. The bank has successfully converted entire branch network to Full Service Banking platform with the conversion of additional 47 branches during the year which played a pivotal role in mobilizing fresh deposits. Net interest income of the bank witnessed increase in 9M12, mainly as a result of growth in loan book. Net profit is lower in this period, on account of provisioning, though considerable improvement has been noted during quarter ended September 2012.
For further information on this rating announcement, please contact Mr. Rashid Zahir at rashid.zahir@jcrvis.com.pk or Mr. Maimoon Rasheed at 042-36610681-84.