PACRA Maintains Entity Ratings of First Punjab Modaraba - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 21, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The ratings reflect the strong patronage of the Modaraba; The Bank of Punjab (BoP) (Rated AA+ by PACRA). The topline increased on account of increase in interest rates and improved business profile. However, the impact of said incline was in turn subsided by considerable increase in finance costs. In way of better profitability, recovery of NPLs also helped. In order to mitigate the effect of accumulated losses, First Punjab Modaraba (FPM) intends to enhance its equity base through further injection of equity from the sponsor. The plan is at an advanced stage.

The company has managed to sustain its earning assets, mainly lending book wherein vehicle financing contributed majorly. The key sponsor is committed for its support in the form of a sustainable funding base. The management is in the process of generating new avenues of business. A comprehensive business plan is under development, which shall be approved by BoP's...