The Board of Directors of Habib Bank Ltd (HBL) has approved an Equity Investment of up to Rs. 6 billion in its subsidiary, HBL informed the main bourse on Tuesday.
According to notice to the Pakistan Stock Exchange (PSX), the board has approved an Equity Investment of up to Rs. 6 billion in its subsidiary namely HBL Microfinance Bank Ltd (HBL MfB), in compliance with all regulatory requirements and the approval of the shareholders of the Bank.
The HBL Microfinance Bank Ltd (HBL MfB), was established in 2002 as a nationwide microfinance bank, licensed by the State Bank of Pakistan. HBL MfB was created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Program (AKRSP), an integrated development program to pioneer the microfinance sector in the country since 1982 in Gilgit-Baltistan and Chitral.
HBL Microfinance Bank Ltd has around 203 branches nationwide. The bank has established collection points in underserved financial regions, facilitating loan repayments and the submission of educational fees for students, thereby enhancing convenience for both borrowers and students.
During 2023 HBL Microfinance Bank (HBL MfB) solidified its mantle as the largest microfinance bank in Pakistan. HBL MfB delivered a 14% growth in its loan portfolio to reach Rs. 97.6 billion, while deposits rose by 10% to Rs. 128 billion. 33% of its 3.7 million clients are women, underlining the bank’s commitment to expanding access to women.
The Bank is the largest provider of housing finance to microfinance clients with a portfolio of Rs. 34 billion and is also the leading lender to agriculture with its portfolio of Rs. 54 billion second only to HBL. The SBP has nominated HBL MfB as the agriculture Champion Bank for Gilgit Baltistan.
Under this mandate, HBL MfB has been playing a leading role in steering the overall agri-banking strategy in the region, including engaging with a host of stakeholders to find solutions to region-specific issues
The Bank continued to grow its lending portfolios, be it the consumer portfolio that increased to Rs. 128 billion, or Agriculture financing, combined with HBL Microfinance’s agri lending increased to Rs. 107 billion, with a 23% market share by the end of 2023.
