The rating agency has incorporated the impact of increased shareholding of Saudi Pak Industrial and Agricultural Investment Company (Pvt) Limited (SAPICO) in SPCBL from 54 to around 70 percent during the last 9 months.
SAPICO is jointly owned by the government of Pakistan and Saudi Arabia. Further, the increase in equity through a 50 percent right issue has also improved the capitalisation level of the bank with capital adequacy ratio exceeding 15 percent. The increase in the minimum paid-up capital requirement for commercial banks has also improved the risk profile of the overall commercial banking sector.
JCR-VIS believes sponsors of the SPCBL are keen to maintain a high level of capitalisation and the bank will meet minimum paid-up capital requirement of Rs 6 billion before the stipulated time.
The bank had also initiated a team building effort during the year with a change in top management and fresh induction at all levels. These measures have resulted in an improvement in policies, controls and risk management.
Further, the management has developed a strategic plan to make SPCBL a significant player in the banking sector. Its primary focus would be to mobilise and maintain core deposit base and improve quality of its advances portfolio.-PR