Karachi: Silk Bank Limited has requested an extension from the Securities and Exchange Commission of Pakistan (SECP) for holding its Annual General Meeting (AGM), as part of its ongoing regulatory compliance efforts. This request, announced via the Pakistan Stock Exchange on October 15, 2024, aligns with the allowances provided by the High Court for seeking necessary regulatory extensions within a stipulated 30-day period.

According to VIS Credit Rating Company Limited, the bank’s latest move follows its notice on September 16, 2024, where it communicated the court’s allowance for extension requests. Silk Bank’s last entity ratings were assigned on October 12, 2020, by VIS, placing the bank at ‘A-/A-2’ (Single A Minus/A-Two) with a ‘Rating Watch-Negative’ status, indicating concerns over potential downward rating actions based on evolving conditions. Concurrently, the rating of its outstanding Tier-2 Term Finance Certificates (TFC) was set at ‘B’ (Single B) also under a ‘Rating Watch-Negative’.

These ratings reflected the bank’s financial health as of June 30, 2020, and were based on the financial statements available at that time. Given the significant temporal gap and ongoing financial developments, VIS has indicated that these ratings are subject to review upon the receipt of updated financial information or further developments related to the bank’s operations and compliance measures.

This step by Silk Bank to seek additional time for holding its AGM underscores ongoing efforts to address and comply with regulatory requirements while navigating operational challenges. The resolution by the Board to seek an extension is part of broader measures to ensure thorough preparations and compliance are met in accordance with legal and regulatory frameworks.