Press ReleasePACRA Assigns Initial Social Impact and Performance Rating to Rural Community Development Programmes
|Social Impact and Performance Rating
|Current (13-Dec-22 )
|RCDP has three members, who have each given a guarantee of up to PKR 100,000 in case of a possibility of default.
|RCDP has strong governance structure backed by a board of directors comprising of eight members including three independent directors. Board committees having independent representation provide additi
|The senior management is qualified and experienced to manage business operations in an efficient manner. Turnover at senior management level is low.
|The target community is well-specified; however, the mission statement may be improved to capture defined and measurable targets. RCDP may publish social indicators while increasing the reporting freq
|Following the expansion strategy, there is an influx of new clients and growth in gross loan portfolio and average loan size, while the mark-up income also increased compared to FY21.
|RCDP is relying on borrowing as the primary source of funding, and the minimum lending rate margin has declined due to a surge in the benchmark rate in FY22. However, the equity of ~PKR 2.5bln generat
|Key Rating Drivers
|About the Entity
|Not-for-profit organization (Section-42)
|Year of Establishment
|Type of License
|Non-banking Microfinance Company (NBMFC)
| Afnan Iqbal
Methodology | Social Impact and Performance Rating | Sep-22
Sector Study | Microfinance | Sep-22
|This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.