JCR-VIS Credit Rating Company Limited (JCR-VIS) has reaffirmed the entity ratings of National Bank of Pakistan (NBP) at 'AAA/A-1+' (Triple A/A-One Plus) with `Stable Outlook'. The previous rating action was announced on June 28, 2016, said a news release of the Company here on Friday.
Ratings assigned to NBP derive strength from the Government of Pakistan's (GoP) majority shareholding in the bank, its role in handling treasury transactions for the GoP as an agent to the State Bank of Pakistan (SBP) in addition to which security of deposits is guaranteed under the Banks' Nationalization Act. Assigned ratings are also supported by the bank's improved profitability levels. On the asset side, gross advances for the bank increased on the back of incremental lending to existing low-risk borrowers belonging to energy and textile sectors. In order to improve asset quality, management has formulated a recovery strategy for the coming two years, as approved by the board.
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