Waseela Bank to con­tinue ex­pan­sion of branches net­work

The Pak Banker - - FRONT PAGE -

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.

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