The Moody's Investors Service in its latest report has affirmed Social Islami Bank PLC's credit rating and revised its outlook from 'negative' to 'stable'.
The decision to upgrade the bank's outlook reflects Moody's confidence in the bank's funding and liquidity stability over the next 12 to 18 months, said the bank in a statement.
Despite challenging liquidity conditions in Bangladesh, the bank has demonstrated resilience with sustained deposit growth throughout the quarters of June and September 2023, indicating restoration of depositor confidence, it said.
One of the key factors contributing to this positive outlook is the improvement in the bank's foreign currency liquidity, bolstered by robust remittance inflows from overseas Bangladeshis, said the statement.
Additionally, the bank's deposit base has witnessed diversification, primarily driven by the growth in retail deposits, it mentioned, adding such shift towards a more granular deposit base is expected to mitigate the risk of significant depositor outflows, further solidifying the bank's financial position.
Moreover, Social Islami Bank has maintained relatively stable solvency metrics over the preceding year.
Moody's upgrades Social Islami Bank's outlook as stable
FE REPORT | Published: February 28, 2024 00:05:58
Moody's upgrades Social Islami Bank's outlook as stable
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