Press Release

JCR-VIS Assigns ‘AA-/A-1’ Ratings to Sindh Bank Limited
 

Karachi, February 25, 2011: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned an initial medium to long-term entity rating of ‘AA-’ (Double A Minus) and short-term rating of ‘A-1’ (Single A-One) to Sindh Bank Limited (SBL). Outlook on the assigned ratings is ‘Stable’.

SBL has obtained license as a scheduled commercial bank for providing general banking and financial services. While the bank’s geographical concentration is likely to be the most prominent in the province of Sindh, it would also cater to other parts of the country. The bank is well-capitalized with an initial equity of Rs. 10.0b. The assigned rating takes into account the bank’s strong loss absorption capacity at the outset, as also its sub-sovereign ownership with the Government of Sindh (GoS), currently being the sole owner. The GoS is also represented on the board and its ownership stake also implies notable funding support.

SBL is headquartered in the financial hub of the country, and has initiated its operation with 2 branches, with the number projected to reach 50 by year end 2011. The board of the bank is diversified having 3 government officials and 4 persons nominated from the private sector. The bank is spearheaded by experienced banker and appointments at key positions have largely been made. All major policies, procedures and control mechanisms have been laid out, documented and approved by the board. The process for branch network development is underway.

The bank has projected profitability from the very first year of operations emanating from the strong initial capital base and projected growth in the resource base in the coming years. Going forward, performance of the bank is largely dependent on effective execution of the bank’s objective and strategy, developing a cost effective funding base, strengthening of business risk management systems and implementation of a core IT system.

For further information on this rating announcement, please contact Mr. Javed Callea (Ext: 501) or Ms. Sabeen Saleem (Ext: 510) at 021-35311861-70 or fax to 021-35311873.



Jamal Abbas Zaidi
Advisor

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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 2011 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