Press Release

JCR-VIS Assigns BBB/A-3 Ratings to Kashf Microfinance Bank Limited

Karachi, April 30, 2009: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned an initial medium to long-term entity rating of ‘BBB’ (Triple B) and short-term rating of ‘A-3’ (Single A-Three) to Kashf Microfinance Bank Limited (KMBL). Outlook on the rating is ‘Stable’.

KMBL has been established with a paid-up capital of Rs. 750m, enabling the bank to operate on a nation-wide basis. The capital of KMBL has been contributed by a diverse group of investors. The bank has projected rapid growth in resource base over the next 5 years, with deposits to act as primary catalyst for funding operations. The deposit mobilization strategy of the bank is centered on the concept of leveraging on the existing clientele of Kashf Foundation (KF), an associate concern.

The ability of the bank to garner micro-savings will pave the way for future business growth. Alternatively, greater reliance may need to be placed on commercial sources of funding which may have an adverse affect on the projected bottom line profitability. Realization of growth targets would also require additional capital injection over the medium to long term.

Purchase of loan portfolio from KF has provided the bank with a revenue stream from the on-set of operations. At year end, marginal infection was noted in the portfolio. The bank has taken adequate measures to keep portfolio infection at sustainable levels. The bank is currently operating with a network of 18 branches. Roll out of an integrated banking application both at the Head Office and the branches has already been achieved, allowing for real time connectivity.

For further information on this rating announcement, please contact the undersigned (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 5311861-70 or fax to 5311873.



Safdar Kazi
Director

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 2009 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .