PTCL Group addresses misleading speculation about financial
soundness of U Microfinance Bank
PTCL Group, the leading ICT services provider in Pakistan,
has unequivocally refuted all unfounded claims and rumors concerning the
financial soundness of U Microfinance Bank (Ubank), its wholly-owned
subsidiary.
Ubank, Pakistan's fastest-growing microfinance bank and a
key player in the banking industry, boasts a robust and unshakable financial
foundation with a strong capital base.
According to PTCL Group, it is committed to assuring that
Ubank's teams, from management to those in the field, will continue to make
progress, innovate, and tirelessly pursue the bank's core mission of achieving
financial inclusion for all segments of Pakistani society.
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Ubank's Gross Loan Portfolio stands as one of the largest in
the industry, a testament to the bank's sustainable growth strategy.
Approximately 54% of this portfolio is backed by gold, underscoring the bank's
financial resilience in its lending practices. Ubank's diversified portfolio
also includes offerings like solar financing, agricultural tractor financing,
housing loans, and vehicle financing, among others.
Ubank enjoys substantial and positive support from PTCL
Group. The bank boasts a paid-up capital of PKR 4 Billion, with an additional
PKR 1 Billion in Tier-1 capital and PKR 1.2 Billion in Tier-2 capital from
PTCL. Furthermore, the bank has raised an additional PKR 1 Billion in Tier-1
capital from the market. The bank's funding base continues to grow steadily
with consistent cash flows, deposits, lending, and capital inflow.
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CEO
Hatem Bamatraf, President and Group CEO of PTCL & Ufone
4G and Chairman of the Board of Directors at U Microfinance Bank, stated,
"Ubank has consistently received strong support from PTCL Group. The bank
has demonstrated impressive financial performance and a positive growth
trajectory. Therefore, I want to emphasize that PTCL Group firmly stands by the
bank and assures investors, customers, and shareholders of our continued
support. Currently, we do not anticipate the need for any equity injection into
the bank but are fully committed to meeting any future growth
requirements."
With a strong capital base, diversified revenue sources, and
a growing portfolio, coupled with remarkable growth, Ubank maintains its
credibility, as evidenced by its long-term credit rating of A+ awarded by PACRA
Credit Rating Agency and VIS Credit Rating Company. Both credit rating agencies
in Pakistan have assigned a 'Stable' outlook to Ubank, recognizing the bank's
sustainable strategic business initiatives.
The current President and CEO of U Microfinance Bank,
Mohamed Essa Al Taheri, who was previously associated with Ubank as a Member of
the Board of Directors, reassures, "We want to address recent rumors
circulating on various platforms regarding UPaisa & U Microfinance Bank's capital
base. These claims are entirely baseless and unfounded. Ubank has a strong and
dedicated management team and enjoys complete support from its investors,
partners, stakeholders, and customers as the bank continues to strive for
growth and excellence."
PTCL is 62% owned by the Government of Pakistan and 26% by
e& (formerly Etisalat). Its subsidiary, U Microfinance Bank, was
established in 2012 and has consistently experienced unwavering growth since
then.
The bank has steadily improved its profitability over the years
while significantly expanding its presence across various urban and rural
regions of Pakistan. Ubank, with its extensive network of 350+ branches,
remains committed to reaching the unbanked population and providing viable
financial products and services to its customers at the last mile.
Source: Daily Pakistan