Waseela Bank to continue expansion of branches network

KARACHI: The management of Waseela Microfinance Bank has planned to add 13 more cities in 2016 aimed at expanding their network operations with beefed up sales team.

Further, the deposits and advances are targeted to increase at a faster pace through competitive landscape, effective execution of business strategy and cohesiveness in management team. With a network of 41 branches, Waseela Bank shares 2 percent of both gross loan portfolio and deposits in Microfinance Banking Industry at end-Dec15. Mobicash share in BB industry transactions (in value terms) was standing at 10% at endSeptember 2015.

The ratings are dependent on the bank's ability to sustain improving trend in its market position while ensuring stable growth in newly built revenue streams. Given growing loan book, related risks mainly credit quality need close monitoring.

Waseela Bank commenced operations in May 2012 as a nationwide microfinance bank. It is a wholly owned subsidiary of Global Telecom Holding (GTH), which in turn, is majority owned by Vimplecom - one of the world's largest telecom groups. Vimplecom also owns Mobilink, bank's super-agent in branchless banking (BB).

PACRA Maintains Entity Ratings of Waseela Microfinance Bank The Pakistan Credit Rating Agency Limited (PACRA) has maintained the long-term and short-term entity ratings of Waseela Microfinance Bank Limited (Waseela Bank) at "A-" (Single A Minus) and "A2" (A Two), respectively. These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

The ratings reflect Waseela Bank's association with a leading global telecom group - Vimplecom - and with Pakistan's largest cellular operator - Mobilink.

The business strategy of the bank is to synergize Mobilink's established franchise to build foothold in expanding branchless banking (BB) - through Mobicash, Waseela's BB brand. Regarding microfinance business, the bank is progressively building its loan book. So far, overall asset quality is good. Deposit mobilization remains a challenge; however, growing BB operations are providing support - deposits from BB represented ~50% in total at end-Dec15. The bank is yet to achieve stability in its performance.