Press Release
VIS Reaffirms Corporate Governance Rating of Allied Bank Limited
Karachi, November 18, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the Corporate Governance Rating (CGR) of Allied Bank Limited (‘ABL’ or the ‘Bank’) at ‘CGR-9++’. The rating signifies very high level of corporate governance. The previous rating action was announced on November 11, 2024.
The CGR of ABL reflects a very high level of governance standards. The rating evaluates several key dimensions, including regulatory compliance, ownership structure, Board composition and functioning, financial transparency and stakeholder relations. ABL, a scheduled bank incorporated in Pakistan and listed on the Pakistan Stock Exchange, is predominantly owned by Ibrahim Holdings (Private) Limited, which holds 90% of its shareholding.
The rating incorporates the Bank’s experienced Board and management team, along with well-established governance and compliance frameworks that align with regulatory requirements and international best practices. ABL maintains a strong corporate governance framework supported by a well-structured Board and its Committees, which consistently promote best governance practices. Notably, all members of the Board Audit Committee are independent directors, enhancing the quality of oversight. Board participation is excellent, and the diverse skill set of its members ensures comprehensive supervision. Both Board and Committees’ meeting minutes are well-drafted and detailed, agenda items and related material are shared in a timely manner to facilitate effective decision-making.
The Board of Directors provides effective oversight through well-defined Committees operating under clearly defined Terms of Reference (TOR). Regular evaluations both internal and independent promote accountability, while orientation and training programs ensure directors remain informed of regulatory developments. The management structure is stable with clear reporting lines. The Bank’s preference for internal promotions further strengthens its governance framework.
The rating also reflects management’s proactive approach to aligning strategic objectives with operational execution. ABL has implemented a comprehensive risk management framework that aligns with its risk acceptance criteria. This framework is overseen by management committees responsible for developing guidelines, procedures, and systems, while the Board sets prudent limits to mitigate and manage concentration risks. Risk management remains a key strength, supported by the in-house Risk Assessment and Management System (RAMS), which enables proactive monitoring and mitigation of credit, operational, and other risks.
A robust internal audit function ensures compliance with regulatory requirements and promotes transparency. The Audit & Risk Review Group (A&RRG), operating under the Board Audit Committee, continuously evaluates and strengthens internal controls. The Compliance Group also demonstrates proactive regulatory adherence.
The Bank has introduced multiple digital banking initiatives/ platforms that has significantly improved service delivery, enhanced customer experience and driven substantial growth in transaction volumes.
Cybersecurity, IT governance, and data protection measures further enhance the Bank’s resilience. These initiatives position ABL to effectively manage emerging cyber risks while leveraging growth opportunities.
ABL upholds transparency by providing comprehensive financial and qualitative disclosures to stakeholders, further reinforcing its commitment to strong governance and stakeholder confidence. Its Shariah governance ensures full compliance with Islamic banking principles. Additionally, the Bank’s sustainability initiatives such as financing green projects, reducing its carbon footprint, and implementing social responsibility programs reflect a strong commitment to ESG practices.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
Applicable Rating Criteria: Corporate Governance Ratings
https://docs.vis.com.pk/Methodologies-2025/Corporate-Governance-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf