Karachi, November 25, 2022 (PPI-OT):VIS Credit Rating Company Limited (VIS) has reaffirmed the Corporate Governance Rating of Allied Bank Limited (ABL) “CGR-9++”. The rating signifies very high level of corporate governance. The previous rating action was announced on December 20, 2021.
ABL is one of the top-five commercial banks in Pakistan with sizable and sustainable market footprint in provision of financial services. The rating reflects effective and proactive approach of the Board for strategic alignment of the bank’s manifestos with implementation of the same by the management on both operational and tactical levels. The rating derives strength from continued efficient and productive two-way communication amongst stakeholders, directors and management, for mitigation of any change adversely impacting the operating dynamics of the bank.
Corporate Governance framework of the Bank is considered adequate, with Board and Board Committees being in place and their compositions being aligned with best practices; all members of Board Audit committee are independent directors. Overall attendance record of Board and its Committees’ meetings was satisfactory with comprehensive discussions regarding various aspects of the Bank. Minutes of Board and its committees’ meetings were observed to be well drafted and comprehensive. Third party evaluation of Board was conducted which assessed performance of the Board on the higher end of the scale. Level of financial and qualitative disclosures in the public domain is also satisfactory.
Agenda items and material information’s were timely disseminated to Board Members for effective decision making. Annual reports are fairly descriptive and contain comprehensive disclosures. Moreover, the rating incorporates major headways made on information security and information technology fronts through digitalization and automation to assist the bank in catering to evolving cyber landscape, materialization of growth prospects coupled with cost rationalization during the medium to long-term rating horizon. The rating draws comfort from the stability in the management team comprising of seasoned professionals along with formulation of conflict-of-interest policy.
The rating takes comfort from structured succession plan which is in place for the key positions, resulting in smooth transition of responsibilities at the top of the hierarchical pyramid. The Bank focuses more on internal elevations rather than lateral hirings, career growth opportunities are offered to all employees through merit-based evaluations, and gender diversity is supported. Moreover, standard operating procedures for appointment of Board members/key executives were developed during the ongoing year. During the rating review period, the Bank has emphasized upon and implemented green banking initiatives to promote and attain environmental compliance.
For more information, contact:
Director Compliance and Rating Analytics,
VIS Credit Rating Company Limited
VIS House, 128/C, 25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi, Pakistan
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: bilal@jcrvis.com.pk
Website: https://www.vis.com.pk/