Press Release

Ratings of Silkbank Limited

Karachi, July 31, 2009: JCR-VIS Credit Rating Company Limited had placed the entity ratings of Silkbank Limited (SBL) under ‘Rating Watch-Developing’ status on April 11, 2009 on account of the merger negotiations with Atlas Bank Limited. While this proposal is no longer under consideration, a re-capitalization plan to meet the shortfall in capital is on the anvil. In view of this, ratings of ‘A-/A-3’ (Single A Minus / A-Three) assigned to SBL continue to be placed under ‘Rating Watch – Developing’ status. Ratings will be reviewed once the capital enhancement plan is approved by the sponsors.

Meanwhile, the management has enhanced deposit mobilization efforts to penetrate the retail segment and reduce depositor concentration levels. In addition to this, measures have also been taken to address the short-comings in the existing information technology infrastructure, improve business processes and standards of customer service. The contribution of these endeavors towards management’s ability to monitor risks in a more pro-active fashion and induce growth in business volumes will be tracked by JCR-VIS on an on-going basis.

While recoveries have been posted and the bank continues to take further provisions, net infection ratios are still high in relation to the bank’s capital. The current operating environment poses additional challenges for market participants and continued economic stagnation may bear adverse impact on quality of more recently underwritten portfolio.

For further information on this rating announcement, please contact Ms. Sabeen Saleem (Ext: 510) or Ms. Sobia Maqbool (Ext: 506) at 5311861-70 or fax to 5311873.

Safdar Kazi

Information herein was obtained from sources believed to be accurate and reliable; however, JCR-VIS Credit Rating Company Limited (JCR-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. JCR-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. JCR-VIS is not an NRSRO and its credit ratings are not NRSRO credit ratings. JCR-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 JCR-VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to JCR-VIS.

JCR-VIS Credit Rating Company Limited