FLASHNEWS:

PACRA Assigns Initial Social Impact and Performance Rating to ASA Microfinance Bank (Pakistan) Limited

Lahore, March 18, 2023 (PPI-OT): ASA Microfinance Bank (Pakistan) Limited (or the ‘Company’) received MFB license but will start operating as MFB after approval of COB from SBP. The Company was formed with a primary focus on women’s empowerment, stemming from the ASAI group’s focus on female entrepreneurs and the financial wellness of the rural population. The Company’s focus on its mission is evident through having ~96% female borrowers at end-Sep 22.

The management presents a client grievance summary to the board on a quarterly basis and has a well-structured program to provide financial literacy training to its customers. It is in the process of conversion to a microfinance bank, and the mobilization of deposits may decrease its reliance on foreign and local funding, improving its sustainability. Going forward, commitment to social objectives and action on the same will be important for the rating. Moreover, the rationalization of planned business strategies would be critical.

For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com