Raqami Islamic Digital Bank Limited (RIDBL) has acknowledged the preliminary entity ratings of ‘AA (plim)/A1’ with a stable outlook assigned by VIS Credit Rating Company Limited. The long-term rating reflects high credit quality with strong protection factors while the short-term rating indicates a sound capacity for timely repayment supported by robust liquidity. VIS will reassess the ratings once the State Bank of Pakistan (SBP) issues RIDBL’s commercial Digital Retail Bank (DRB) licence.

RIDBL was incorporated on July 10, 2023 and received a Restricted Pilot Licence from SBP on May 13, 2025 and pilot operations began on May 27, 2025. The bank is preparing for a targeted commercial launch in Jan 2026 subject to SBP approval with current priorities centred on platform readiness and the rollout of initial products including Savings Accounts, Term Deposit Receipts (TDRs) and Digital Supply Chain Financing. Shareholding is held by Pakistan Kuwait Investment Company (PKIC) at 70.13 per cent and Enertech Holding Company at 26.97 per cent.

The assigned ratings reflect RIDBL’s strong sponsor profile, capital position and governance framework. Both PKIC and Enertech have provided undertakings and financial guarantees to SBP to cover any potential capital shortfalls during the Bank’s early phase which further strengthens financial stability.

Raqami has developed a comprehensive governance structure with representation from sponsor and independent directors alongside a management team with experience in digital operations, treasury, risk, compliance and technology. The Shariah Board chaired by Mufti Muhammad Imran Ashraf Usmani oversees adherence to Shariah principles across all operations and products.

RIDBL’s digital-first model is designed to deliver scalable and accessible financial solutions through digital channels. Its core banking platform built on a regionally proven system offers flexibility secure integrations and operational efficiency with embedded cybersecurity and business continuity measures. The bank’s initial strategy focuses on corporate collections, payroll management and digital supply chain financing with future expansion planned into consumer and SME segments supported by data analytics and AI-enabled capabilities.

The bank benefits from strong initial capitalisation with phased injections planned to maintain regulatory buffers and support early-stage operations. Profitability is expected to improve steadily with growth in financing, deposit mobilisation and operational efficiencies. Liquidity management remains a key priority as RIDBL transitions from sponsor-funded operations to deposit-based funding through Shariah-compliant savings and investment products and partnerships with commercial banks and fintechs.

Pakistan’s digital banking landscape continues to offer significant growth potential driven by favourable demographics, regulatory support and rising digital adoption although competitive pressures remain high. RIDBL’s ability to execute its business strategy and sustain sponsor commitment will be central to maintaining its credit profile.

For additional information, please contact: https://vis.com.pk/Home/PressRelease?mRatingId=01098001001
VIS’s official press release is available on their website.
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