Sindh Bank secures upgrade to ‘AA’ long-term rating

December 04, 2025 (MLN):  Sindh Bank Limited (SNDB) has received an upgrade in its long-term entity rating to ‘AA’ from ‘AA-’, with its short-term rating reaffirmed at ‘A1+’.

The outlook on the ratings remains ‘Stable’, according to a press release issued by VIS Credit Rating Company Limited.

The state-owned bank fully held by the Government of Sindh through its Finance Department has shown strengthening operating fundamentals, supported by renewed momentum in corporate and commercial lending activities.

The revival is expected to enhance profitability at a time when the banking sector is broadly grappling with tighter margins and elevated taxation.

SNDB, which operates 330 branches nationwide, continues to benefit from evident sponsor support through past capital injections, an experienced management team, and a stable governance framework.

Asset quality indicators have also improved considerably, aided by sustained recoveries and prudent provisioning that have helped contain risks stemming from legacy non-performing loans.

While profitability remained stable over the review period driven by growth in earning assets and higher non-markup income the recent policy rate reduction has placed some pressure on spreads.

Even so, capitalization levels remain strong, supported by internal capital generation and a cautious expansion strategy.

The bank’s liquidity profile also remains robust, anchored by a diversified and expanding deposit base and regulatory liquidity metrics well above required thresholds, as stated by VIS.

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