...Stand-Alone Strength Drives Ratings: Banrurals IDRs are driven by its VR. Ratings reflect the banks strong local franchise, good capital position, high profitability, good credit quality and its stable and diversified deposit base. However, the ratings also take into account Banrurals moderate concentrations in public sector funding as well as the limited revenue diversification and lower efficiency levels resulting from its microfinance orientation. Relatively Higher Profitability: Banrurals profitability in 2013 was above similarly rated peers, boosted by its ample net interest margin. The banks low funding cost and higher interest income compensate for its weaker efficiency levels and lower income diversification. Strong Local Franchise: Banrurals strong franchise is the result of its consistent strategy, ample geographic coverage and the creation of products and services adapted for its main clients. Banrurals unique capacity to continue growing in rural areas regions is a key element...
