Islamabad: HBL has acquired a 51% majority shareholding in the First MicroFinance Bank Limited (FMFB). A signing ceremony to mark the event was held today in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.
FMFB offers targeted financial and multi-sectoral products and services based on the evolving needs of its clients, including a wide range of flexible loan products to serve the diverse financial needs of the unbanked and the under-banked in the rural, urban and semi-urban areas in Pakistan. The Bank also offers micro-insurance products with credit and saving services to all borrowers to provide protection against life, health and financial liabilities.
Speaking on the occasion, Sultan Ali Allana, Chairman HBL said,
“The acquisition is in line with HBL’s commitment to be a leader in financial inclusion with an emphasis on serving customers from all segments of society across all areas of Pakistan”.
Nauman K Dar, HBL’s President & CEO said
“Today’s investment will enable HBL to more directly influence the microfinance space, accelerate inclusion and rapidly scale up the customer base. HBL will provide guidance and enable FMFB to leverage technology based synergies such as branchless and mobile banking which are ideally suited to service this mass segment efficiently”.
The First MicroFinanceBank Ltd, Pakistan (FMFB-P) was established in 2002 as a nation-wide microfinance bank, licenced by the State Bank of Pakistan. FMFB-P was created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme’s (AKRSP), an integrated development programme to pioneer the microfinance sector in the country since 1982 in Gilgit-Baltistan and Chitral.
HBL was the first commercial bank to be established in Pakistan in 1947. The Government of Pakistan privatized HBL in 2004 through which Aga Khan Fund for Economic Development (AKFED) acquired 51% of the Bank’s shareholding and the management control. The remaining 41.5% shareholding by the Government of Pakistan was divested in April 2015. AKFED continues to retain 51% shareholding in HBL while the remaining shareholding is held by individuals, local and foreign institutions and funds.