HBL acquires 51pc shares in First MicroFinance Bank

KARACHI: HBL has acquired a 51 percent majority stakes in the First MicroFinance Bank Limited (FMFB), a statement said on Wednesday. 

FMFB is the first and oldest microfinance bank in the country with a presence in more than 150 locations, covering 66 districts. 

“FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Program (AKRSP) dating back to 1982,” the statement said. 

A signing ceremony to mark the event was held 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 statement said. “The bank also offers micro-insurance products with credit and saving services to all borrowers to provide protection against life, health and financial liabilities.” 

Sultan Ali Allana, chairman at HBL said the acquisition is in line with the bank’s commitment, “to be a leader in financial inclusion with an emphasis on serving customers from all segments of the society across all areas of Pakistan.” 

Nauman K Dar, president and chief executive officer at HBL said the investment will enable the bank to accelerate the financial inclusion and rapidly scale up the customer base in the microfinance space. 

“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,” Dar said.