Rating Details	Rating Type	Social Impact and Performance Rating
	Dissemination Date	Current (17-Mar-26 )	Previous (17-Mar-25)
	Action	Maintain	Maintain
	Rating	SIP2	SIP2
	Outlook	Positive	Positive
	Rating Watch	-	-

Rating Rationale	Factor	Comment
	Ownership/Members	A wholly owned subsidiary of ASA International (ASAI), ASA MFB (Pakistan) Limited was incorporated under the Microfinance Institutions Ordinance, 2001. With ASAI holding 99.99% ownership, the bank leverages a 13 country global footprint to drive financial inclusion and economic empowerment.
	Governance	The board comprises seven members including two independent and four non executive directors, alongside the CEO reflecting a sound and well balanced governance framework.
	Management	Led by a highly skilled senior management team, ASA MFB maintains a well established organizational structure focused on operational excellence. This leadership stability, evidenced by minimal senior level turnover, ensures strategic coherence, sustainable growth, and long term institutional resilience.
	Social Impact	ASA MFB mission clearly defines its target market and strategic trajectory. To ensure alignment, senior management committees oversee social impact enhancements, while a dedicated sustainability unit reinforces the bank's commitment to long term institutional health.
	Business Sustainability	By December 2025, ASA MFB Outstanding Loan Portfolio (OLP) reached approximately USD 118 million, maintaining an impressive 0.4% PAR > 30. This scale is supported by 405 business locations serving 741,000 clients.
	Financial Sustainability	As of December 2025, ASA MFB equity base reached approximately PKR 10,255 million (2024: PKR 10,240 million), supported by a Capital Adequacy Ratio (CAR) of 22.22%. This capital buffer, combined with a 0.4% PAR > 30, underscores the bank's asset quality and long term fiscal resilience.

Key Rating Drivers

ASA MFB social mandate is deeply integrated into its credit profile, with approximately 713,000 female borrowers constituting 96% of outreach. The bank rural penetration exceeding 222,000 clients and near 90% retention demonstrate durable franchise value. A dedicated sustainability unit and Board approved policies ensure mission alignment, while transparent grievance mechanisms mitigate regulatory and reputational risks. The 0.4% PAR > 30 reflects sound underwriting standards protecting vulnerable segments. This social focus, supported by 22.22% CAR and PKR 10.3 billion equity, entrenches stability amid macroeconomic pressures on low income households.

About the Entity
	Legal Structure	Public Limited
	Year of Establishment	19-Mar-08
	Type of License	Non-banking Microfinance Company (NBMFC)
	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-25	Sector Study | Microfinance | Oct-25

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