The Pakistan Credit Rating Agency (Pacra) has maintained the long-term and short-term ratings of Askari Bank Limited (AKBL) at AA (Double A) and A1+ (A one plus) respectively. The ratings of first and the second unsecured subordinated TFC issues of Rs 1,500m have also been maintained at "AA-" (Double A Minus), says a press release.
These ratings denote a very low expectation of credit risk emanating from a very strong capacity for timely payment of financial commitments. The ratings reflect AKBL's strong capital structure supported by sound profitability, though lately under pressure due to higher provisioning against rising NPLs.
While focusing on strengthening the risk management framework and recovery efforts to safeguard its asset quality, the management has adopted a multifaceted strategy to forge ahead in an increasingly competitive banking industry. The AKBL, operating a countrywide network of 150 branches (including 14 Islamic branches) and an offshore banking unit, commenced its operations in 1992.
It continues to benefit from the implied support and goodwill that emanates from its link with the Army and the use of the name 'Askari'. The Army Welfare Trust (AWT) remains its principal shareholders. It has business interests spread across a wide range of sectors. Serving and retired army officials nominated by AWT dominate the bank's board of directors.-PR