Press Release

VIS Upgrades Entity Ratings of NRSP Microfinance Bank Limited

Karachi, October 22, 2026: VIS Credit Rating Company Limited (VIS) has upgraded entity ratings of NRSP Microfinance Bank Limited (‘NRSPMFB” or the ‘MFB’) from 'A-/A2' (Single A Minus/A Two) to ‘A/A1’ (Single A/A One). Medium to long term rating of 'A' indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of 'A1' indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned ratings remains ‘Stable.’ Previous rating action was announced on May 05, 2026.

The ratings reflects the material strengthening in NRSPMFB overall risk profile, supported by improved capitalization, enhanced provisioning coverage, and a more resilient financial position. The Bank has strengthened its capital base through fresh equity injection, allowing it to fully absorb Expected Credit Losses, identified upon the adoption of IFRS 9. As a result, capital adequacy has improved materially to a level above the minimum requirement, without any support from forbearance allowed by SBP for initial adoption of IFRS 9. Capital adequacy is expected to strengthen further through the year-end, with improved profitability. While net infection remains materially higher than the levels observed prior to the implementation of IFRS 9, asset quality indicators do not imply material balance sheet risk, given the portfolio’s now mostly secured nature, with stronger provisioning coverage contributing to a reduction in net infection and net NPLs relative to capital. Going forward, sustained capital strengthening and effective management of asset quality pressures will remain important considerations for the MFB’s credit profile.


For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.

Applicable Rating Criteria:

Micro-Finance Banks
https://docs.vis.com.pk/Methodologies-2025/MicroFinance-Nov-2025.pdf

VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright October 22, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.