Press Release
VIS Assigns Preliminary Entity Ratings to Raqami Islamic Digital Bank Limited
Karachi, November 12, 2025: VIS Credit Rating Company Limited (VIS) has assigned preliminary entity ratings of ‘AA (plim)/A1’ (Double A Preliminary/A One) to Raqami Islamic Digital Bank Limited (‘RIDBL’ or ‘Raqami’ or the ‘Bank). Medium to long term rating of ‘AA (plim)’ indicates high credit quality; protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable’. The ratings will be reassessed and finalized upon the State Bank of Pakistan’s (SBP) grant of a license to Raqami Islamic Digital Bank Limited (RIDBL) to commence commercial operations as a Digital Retail Bank (DRB).
RIDBL was incorporated as a public limited unlisted company with the Securities and Exchange Commission of Pakistan (SECP) on July 10, 2023. The Bank was granted a Restricted Pilot License by the SBP on May 13, 2025, under the central bank’s multi-stage Licensing and Regulatory Framework for Digital Banks (DB Framework), and commenced pilot operations on May 27, 2025. Building on the successful progress of its pilot operations, the Bank is now preparing for its commercial launch, targeted for January 2026, subject to SBP’s approval. The current focus remains on ensuring full readiness of its mobile banking platform and finalizing the initial suite of products including Savings Accounts, Term Deposit Receipts (TDRs), and Digital Supply Chain Financing to support a seamless transition into commercial operations. RIDBL’s shareholding is held by Pakistan Kuwait Investment Company (Private) Limited (PKIC) (70.13%), along with Enertech Holding Company, KSC (Enertech) (26.97%).
The assigned ratings of Raqami Islamic Digital Bank Limited (‘RIDBL’ or ‘Raqami’ or ‘the Bank’) reflect strong sponsor support, capitalization, and a sound governance framework underpinning its establishment as Pakistan’s first fully Islamic digital bank. The ratings are supported by the sponsorship of PKIC and Enertech, both possessing financial strength and institutional credibility. Additional comfort arises from sponsor undertakings to the SBP, including financial guarantees to cover any capital shortfall during the initial years.
Raqami has established a robust governance and organizational structure with balanced representation of sponsor and independent directors to ensure effective oversight. The Board, supported by an experienced management team, provides strategic direction and ensures adherence to regulatory standards. The management team comprises professionals with expertise in digital operations, treasury, risk management, compliance, and technology. Governance is further strengthened through specialized management committees responsible for overseeing risk, compliance, liquidity, and technology functions. The Bank’s Shariah Board (SB), led by Mufti Muhammad Imran Ashraf Usmani along with other distinguished scholars, brings extensive expertise in Islamic finance to ensure that all operations and product structures fully comply with Shariah principles. The SB’s guidance under his leadership reinforces the Bank’s mission to deliver authentic and innovative Shariah-compliant digital financial solutions.
RIDBL’s business model is built on a forward-looking digital-first approach aimed at delivering scalable, efficient, and accessible banking solutions. The Bank plans to operate primarily through digital channels, reducing dependence on physical infrastructure while expanding financial access to underserved and unbanked segments. Its core technology platform, based on a regionally proven digital banking system, has been developed to provide flexibility, security, and seamless integration with partners and emerging fintech ecosystems. The underlying architecture is designed with advanced cybersecurity features, and comprehensive business continuity capabilities to ensure resilience and readiness for full-scale commercial operations.
The business strategy prioritizes partnerships to establish a market presence during the early phase, focusing on corporate collections, payroll management, and digital supply chain financing. Over time, the Bank intends to expand into consumer and SME segments, with plans to introduce Shariah-compliant retail and wealth management products supported by data analytics and artificial intelligence. Effective implementation of this strategy will be essential for achieving scale and long-term financial sustainability.
RIDBL’s financial profile benefits from strong initial capitalization and committed sponsor funding, providing an adequate buffer above regulatory requirements during the early operating years. The capitalization plan, supported by phased injections, offers resilience against expected initial losses. Profitability is expected to develop gradually as the Bank expands its financing portfolio and deposit base, supported by operational efficiencies and improved margins.
Liquidity management remains a key focus as the Bank transitions from sponsor-funded operations to deposit-based funding. The strategy emphasizes stable, low-cost deposit mobilization through Shariah-compliant savings and investment products, complemented by partnerships with commercial banks and fintech platforms.
Pakistan’s digital banking sector presents meaningful opportunities due to favorable demographics, regulatory support, and growing digital adoption. However, competition from established mobile wallets, microfinance banks, and conventional banks’ digital platforms remains considerable. Going forward, ratings remain underpinned on continued sponsor support and realization of projected plans.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Financial Institutions
https://docs.vis.com.pk/Methodologies%202024/Financial-Institution-v2.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf