Raqami Islamic Digital Bank acknowledges VIS Assignment of preliminary entity ratings

Short-term and long-term ratings for RIDBL reflect a strong sponsor profile, capitalisation, and governance framework

Pakistan's Shariah-compliant digital bank, Raqami Islamic Digital Bank Limited (RIDBL), announces a preliminary entity rating of 'AA (plim)/A1' with a 'Stable' outlook from VIS Credit Rating Company Limited (VIS).

The long-term rating reflects high credit quality and strong protection factors, while the short-term rating indicates a strong capacity for timely repayment supported by sound liquidity. VIS will reassess and finalise the ratings following the State Bank of Pakistan’s (SBP) issuance of RIDBL’s commercial Digital Retail Bank (DRB) license.

RIDBL was incorporated on July 10, 2023, and was granted a Restricted Pilot License by SBP on May 13, 2025. Pilot operations commenced on May 27, 2025.

The Bank is now preparing for its targeted January 2026 commercial launch, subject to SBP approval, with current priorities focused on platform readiness and finalising initial products such as Savings Accounts, Term Deposit Receipts (TDRs), and Digital Supply Chain Financing.

Shareholding is held by Pakistan Kuwait Investment Company (PKIC) at 70.13% and Enertech Holding Company at 26.97%.

The assigned ratings reflect RIDBL’s strong sponsor profile, capitalisation, and governance framework. Both PKIC and Enertech have extended undertakings and financial guarantees to SBP to cover potential capital shortfalls during the Bank’s early years, further strengthening financial stability.

Raqami has developed a comprehensive governance structure with representation from sponsor and independent directors and a management team experienced in digital operations, treasury, risk, compliance, and technology.

The Shariah Board, chaired by Mufti Muhammad Imran Ashraf Usmani, oversee the adherence to Shariah principles across all operations and products.

Raqami’s digital-first model aims to deliver scalable and accessible financial solutions primarily through digital channels. Its core banking platform, built on a regionally proven system, is designed for flexibility, secure integrations, and operational efficiency, with built-in cybersecurity and business continuity measures.

The Bank’s initial strategy centres on partnerships in corporate collections, payroll management, and digital supply chain financing, with future expansion planned into consumer and SME segments supported by data analytics and AI-driven capabilities.

The Bank benefits from strong initial capitalsation with phased injections planned to maintain regulatory buffers and support early-stage operations. Profitability is expected to improve progressively with financing growth, deposit mobilization, and operational efficiencies

Liquidity management remains a key focus 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 sector continues to offer significant growth potential driven by demographics, regulatory support, and rising digital adoption, although competition remains strong.

The Bank’s ability to execute its business strategy and retain sponsor support will be central to maintaining its credit profile.