Rating Details	Rating Type	Social Impact and Performance Rating
	Dissemination Date	Current (13-Dec-23 )	Previous (13-Dec-22)
	Action	Maintain	Initial
	Rating	SIP3++	SIP3++
	Outlook	Stable	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership/Members	RCDP is a public unlisted company incorporated under Section 42 of the Companies Ordinance 1984.The Company has three members at the helm.
	Governance	RCDP has a strong governance framework upheld by an eight-member Board of Directors, including three independent directors. The presence of independent director and board committees enhances oversight
	Management	The senior management is qualified and experienced to manage business operations efficiently. Furthermore, the turnover within the senior management ranks remains notably low. RCDP should establish a
	Social Impact	RCDP has undertaken several social activities that have yielded a positive impact during FY23. A social impact committee may be established for further oversight.
	Business Sustainability	Following the expansion strategy, there is an influx of new clients and growth in gross loan portfolio and average loan size. During 1QFY24, RCDP earned a markup income of ~PKR 1,001mln, with a profit
	Financial Sustainability	RCDP is maintaining a balanced and healthy asset portfolio while ensuring adequate funding sources and managing liquidity effectively. The equity of ~PKR 3.2bln generated on the back of internal capit

Key Rating Drivers

The Rural Community Development Programme('RCDP' or the 'Company') was established with the primary objective of empowering impoverished communities by enhancing their livelihood opportunities through the provision of viable and suitable microfinance services.Going forward, RCDP's actions toward its goal of social and economic uplift of marginalized communities will be important from the rating perspective. It's crucial to streamline operational expenses and secure access to diverse funding sources to ensure sustainable performance.

About the Entity
	Legal Structure	Not-for-profit organization (Section-42)
	Year of Establishment	03-Nov-15
	Type of License	Non-banking Microfinance Company (NBMFC)
	Majority Ownership	N/A

Regulatory Disclosures	Analyst	Applicable Criteria	Related Research
	Hassaan Ahmad Hassaan.Ahmad@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Social Impact and Performance Rating | Sep-23	Sector Study | Microfinance | Sep-23

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