Press Release

JCR-VIS Assigns Ratings to NRSP Microfinance Bank Limited

Karachi, April 12, 2012: JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned an initial medium to long-term entity rating of ‘BBB+’ (Triple B Plus) and short-term rating of ‘A-3’ (Single A-Three) to NRSP Microfinance Bank Limited (NRSPB). Outlook on the medium to long-term rating is ‘Stable’.

NRSPB has equity of Rs. 1b with a national scale license to conduct microfinance banking activities in Pakistan. The bank’s capital has been contributed by a diverse group of investors namely National Rural Support Program (NRSP), Acumen Fund - USA, KFW Banking Group - Germany, and International Finance Corporation.

Loan portfolio of the bank has been built by acquiring NRSP’s well established client base in 13 districts of southern Punjab and upper Sindh, enabling the bank to post profits in the first year of its operations. Future profitability is however subject to growth in loan portfolio while keeping operating expenses and infection within manageable levels. Field staff has mostly been recruited from NRSP, enabling continuity of client relationships.

The ability of the management to scale up operations, while maintaining portfolio quality will be tested over time. Furthermore, growth in the credit portfolio is contingent upon the bank’s ability to garner funding. Funding strategy of the bank entails both commercial borrowings and deposit mobilization from the existing areas of its operations. Deposit potential in the bank’s area of operations is however yet to be ascertained.

The bank is currently operating through a network of 19 branches and 22 point of sales. Rollout of a core banking system, Oracle Flexcube, has been achieved in the first branch. Disaster recovery site is also expected to go live by April-end 2012.

For further information on this rating announcement, please contact Mr. Rashid Zahir at or Mr. Maimoon Rasheed at 042-36610681-84.

Jamal Abbas Zaidi
Deputy CEO

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited 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.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.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 2012 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.

JCR-VIS Credit Rating Company Limited