The Pakistan Telecommunication Company Limited (PTCL) announced on Friday that it is set to explore potential investment opportunity in the microfinance sector.
“The Board of Directors of Pakistan Telecommunication Company Limited (the “PTCL/Company”) has authorized the Company to explore potential investment opportunity in the Microfinance sector in Pakistan,” the company said in a notice to the Pakistan Stock Exchange (PSX).
In case of any development in this respect PSX shall accordingly be informed as per applicable laws, the notice added.
Potential options for PTCL
Although the company officials are tight-lipped about the entity the company is looking to invest in, it is pertinent to mention here that PTCL Group has also shown interest in acquiring Telenor Pakistan’s operations and management in totality.
Although nothing official was announced about PTCL Groups’ internet in Telenor, sources informed ProPakistani earlier this year that both parties i.e. Telenor and PTCL were in advanced talks.
Considering PTCL’s interest in Telenor, it is likely that the company might be interested in a potential investment opportunity in Easypaisa, which is part of Telenor Microfinance Bank. Telenor Microfinance Bank is jointly owned by Telenor Group and Ant Group.
Earlier this year, negotiations between Apna Microfinance Bank Limited (APNA) and FINCA Microfinance Bank Limited (FINCA) regarding combining the operations of the two banks failed. Subsequently, APNA said that is exploring other opportunities to secure the interest of its stakeholders, depositors, borrowers, regulator, partners, and staff.
There is some likelihood that PTCL may look at APNA as another potential investment opportunity to strengthen its position in Pakistan’s microfinance sector.
It is pertinent to mention here that PTCL Group already operates the U Microfinance Bank Ltd. (U Bank). The bank has a network of more than 300 branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions.
An incompetent company with a poor track record and always incurring financial losses is trying to do different things rather than improving its services in IT sector, which is its primary responsibility.