Ufone has been granted licence to operate national wide U Microfinance Bank (formerly Rozgar Microfinance Bank Limited) by State Bank of Pakistan, with which it intends to offer branchless banking in future.
Arif Sirhindi will be president and CEO of U Microfinance Bank, who possess rich experience of consumer banking with various bank including Askari Bank Limited, the partner of Zong for Timepey.
Pakistan Telecommunication Company Limited (PTCL) initiated talks for acquisition of banking shares in March after State Bank of Pakistan suggested it to buyout a bank instead of getting new licence to establish new bank, which it earlier applied for.
Rozgar Microfinance Bank Limited was a district-wide microfinance bank (MFB) operating in Karachi district with one branch and 6 service centres.
In August, 2012, Pakistan Telecommunication Company Limited (PTCL) was allowed by SBP to acquire 100 percent shareholding of Rozgar Microfinance Bank Limited on the condition that PTCL would enhance the status of this microfinance bank into a nationwide MFB within one year by bringing in a professional management team.
PTCL honored its commitment and managed Rs 1 billion mandatory assets for the banks so far.
After completion of all relevant formalities and change in name of Rozgar MFB to U Microfinance Bank Limited, SBP issued a nationwide Microfinance Banking Licence to U Microfinance Bank Limited.