The Board of Directors of Habib Bank Ltd (HBL) has greenlit an Equity Investment of up to Rs. 6 billion in its subsidiary, as communicated by HBL to the main bourse on Tuesday. As per the notice to the Pakistan Stock Exchange (PSX), the board has sanctioned an Equity Investment of up to Rs. 6 billion in its subsidiary known as HBL Microfinance Bank Ltd (HBL MfB), ensuring compliance with all regulatory requisites and securing the approval of the Bank’s shareholders.
Established in 2002, HBL Microfinance Bank Ltd (HBL MfB) operates nationwide as a licensed microfinance bank under the auspices of the State Bank of Pakistan. The bank originated from the structured transformation of the credit and savings section of the Aga Khan Rural Support Program (AKRSP), an integrated development program pioneering the microfinance sector since 1982 in Gilgit-Baltistan and Chitral.
HBL Microfinance Bank Ltd boasts a network of approximately 203 branches nationwide. Additionally, it has set up collection points in financially underserved regions, facilitating loan repayments and the submission of educational fees for students, thereby enhancing convenience for borrowers and students alike.
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In 2023, HBL Microfinance Bank (HBL MfB) fortified its position as the largest microfinance bank in Pakistan. It recorded a robust 14% growth in its loan portfolio, reaching Rs. 97.6 billion, while deposits surged by 10% to Rs. 128 billion. Notably, 33% of its 3.7 million clients are women, underscoring the bank’s commitment to gender-inclusive financial access.
The bank emerges as the foremost provider of housing finance to microfinance clients, boasting a portfolio of Rs. 34 billion. Furthermore, it holds a prominent position in agricultural lending, with a portfolio of Rs. 54 billion, second only to HBL. The State Bank of Pakistan (SBP) has designated HBL MfB as the agriculture Champion Bank for Gilgit Baltistan.
Under this mandate, HBL MfB actively leads the agri-banking strategy in the region, collaborating with various stakeholders to address region-specific challenges. The bank continues to expand its lending portfolios, with the consumer portfolio reaching Rs. 128 billion, and agricultural financing, combined with HBL Microfinance’s agri lending, reaching Rs. 107 billion by the end of 2023, capturing a 23% market share.
