Rating Details	Rating Type	Social Impact and Performance Rating
	Dissemination Date	Current (17-Mar-25 )	Previous (17-Mar-24)
	Action	Maintain	Maintain
	Rating	SIP2	SIP2
	Outlook	Positive	Positive
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership/Members	ASA Microfinance Bank (Pakistan) Limited is a wholly owned subsidiary of ASA International (ASAI), incorporated under the Microfinance Institutions Ordinance, 2001. ASA International holds approximate
	Governance	The Board of Directors consist of six members, including two independent and four non-executive directors and CEO, highlighting a robust governance framework.
	Management	ASA-MFB operates within a well-structured and resilient organizational framework, supported by an experienced management team that upholds operational efficiency and excellence. ASA-MFB's leadership s
	Social Impact	ASA-MFB's mission statement explicitly defines its target market and strategic approach. To uphold its mission alignment, ASA-MFB has formulated senior management-level committees that provide oversig
	Business Sustainability	ASA-MFB's Outstanding Loan Portfolio (OLP) amounted to approximately USD 90 million at the end of December 2024, representing a market share of around 3.7% among microcredit institutions in the countr
	Financial Sustainability	ASA-MFB's equity base stood at approximately PKR 10,240 million at the end of December 2024, compared to approximately PKR 10,296 million at the end of December 2023. The current equity base is consid

Key Rating Drivers

ASA-MFB received approval from the State Bank of Pakistan to commence microfinance banking operations on November 13, 2023. Since then, it has upgraded its Core Banking System and is well-prepared for the SBP inspection to introduce deposit services. ASA-MFB is committed to financial inclusion and women’s empowerment, providing microfinance services to underprivileged households across Pakistan. The bank also actively supports social initiatives to promote long-term community development. Its strong social mission and strategic efforts will be key factors in determining its 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
	Usama Ali usama.ali@pacra.com +92-42-35869504 www.pacra.com	Assessment Framework | Social Impact and Performance Rating | Sep-24	Sector Study | Microfinance | Oct-24

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