The Pakistan Credit Rating Agency (PACRA) has assigned positive outlook to the ratings of the Bank oh Khyber (BoK). Meanwhile, the long-term and short-term entity ratings are maintained at 'A-' (Single A minus), 'A2' (A two) respectively. The ratings denote low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.
The ratings primarily reflect the strong ownership structure of Bok and demonstrated support of the major shareholder (Government of Khyber Pakhtunkhwa) in terms of capital injection and providing a stable deposit base. The recently received equity, while improving the liquidity profile and capital base of the bank, is expected to support the bottom-line performance. The management intends to pursue a relatively aggressive strategy aiming at all round improvement - low cost deposit mobilisation, branch expansion particularly outside KPK, selected large-ticket credit growth and, in turn, robust profitability.-PR