JCR-VIS Reaffirms Entity Rating of Burj Bank Limited
JCR-VIS Credit Rating Company has reaffirmed the entity ratings of Burj Bank at ‘A/A-1’. Outlook on the ratings is ‘Stable’. Ratings take into account the financial profile of Islamic Corporation for Development of the Private sector (ICD), one of the major shareholders of the bank. The recent approval by shareholders to increase the bank’s paid up capital (free of losses) to Rs. 6b is likely to create room for growth in core business activities, which is constrained by the high level of Capital Adequacy Ratio required to be maintained by the State Bank of Pakistan. With a CAR of 22.5% at end-Dec’12 and net NPLs in relation to tier-1 capital also within manageable limits, the bank continues to depict sound risk absorption capacity. Burj has set up 25 new branches during FY12 to increase the total outreach to 75 branches by year-end. A further 25 branches are planned to be set up during the ongoing year.