...The rating factors in Pan Asia Banking Corporation Plc s (PABC) improving capitalisation and profitability. The rating remains constrained by the requirement to meet the minimum capital requirement (MCR) set by Central Bank of Sri Lanka (CBSL) by FYE##, its high net NPL/equity ratios and concentrations in its credit portfolio. CBSL increased the MCR for licensed commercial banks (LCBs) in #### from LKR#.# billion to LKR#.#bn by FYE##. An equity infusion of LKR### million in FY## and internal capital generation over FY##\##FY## improved capitalisation for PABC (equity was LKR#.##bn at Q###) as indicated by an equity/assets ratio of #.#% at FYE## (#.#% at FYE##, #.#% at Q###); the equity infusion was partly to meet MCR. PABC's management informs Fitch that its investors are committed to raising the balance equity to meet MCR. Although sector margins have tightened, PABC's yields on its target market were high and the increased...

Report Type: Full Rating Report
Company(ies): Pan Asia Banking Corporation Ltd
Ticker(s): PABC
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 Fitch Research
Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings has grown rapidly during the past decade gaining market presence throughout the world and across all fixed income markets.