Rating Details	Rating Type	Social Impact and Performance Rating
	Dissemination Date	Current (17-Mar-24 )	Previous (17-Mar-23)
	Action	Maintain	Initial
	Rating	SIP2	SIP2
	Outlook	Positive	Stable
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership/Members	ASA is a public unlisted company owned by ASA International(ASAI) Holding with an ownership stake of ~99.99%.The ASAI group boasts a diverse global presence with operations currently spanning 13 count
	Governance	The Board of Directors consist of seven members, including three independent directors, highlighting a robust governance framework, three non-executive directors representing ASAI , and one executive
	Management	A well-defined organizational structure is in place, supported by experienced management team ensuring smooth operations. Furthermore, turnover among senior management personnel remains notably low.,
	Social Impact	ASA's mission statement delineates its target market and operational approach. Additionally, ASA boasts two senior management committees dedicated to ensuring alignment with its mission through enhanc
	Business Sustainability	The Company is experiencing significant YOY growth, with the GLP reaching ~PKR 19bln, translating to a market share of ~3.7% as at end-Dec'23. Despite this rapid growth, expenses are being effectively
	Financial Sustainability	The Company's equity base stood at ~PKR 10bln at end-Dec'23. The Company is highly dependent on funding and the liquidity in terms of GLP is ~12% and in relation to equity it stands at ~29% as at end-

Key Rating Drivers

ASA Microfinance Bank (Pakistan) Limited ('ASA' or the 'Company') converted into a Microfinance Bank in Nov'23 as a non-deposit lending institution. Consequently, the Company has updated its Core Banking System, following which, it intends to proceed with the conversion into a deposit-taking institution. The Company's mission is to offer microfinance services to underprivileged households in Pakistan, with a focus on financial inclusion and women's empowerment. The positive outlook showcases ASA's active participation in social initiatives, leading to a significant and enduring impact within the community. ASA's dedication to its social goals and proactive measures in this regard will play a pivotal role in determining the assigned rating.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	19-Mar-08
	Type of License	Microfinance Bank (MFB)
	Majority Ownership	ASA International Holding (99.99%)

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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