Egypt's leading fintech player, MNT Halan, is poised to
acquire the operations of Advans Microfinance Bank in Pakistan, following
approval from the State Bank of Pakistan for the acquisition deal.
The transaction is subject to further legal formalities,
including obtaining a No-Objection Certificate (NOC) from the Competition
Commission of Pakistan (CCP). Advans Microfinance Bank, a subsidiary of Advans
S. A. Sicar in Pakistan, currently holds a 99.99 percent stake.
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Established in 2013, the microfinance bank has expanded its
footprint to 13 branches across various cities in Sindh. As of September 2023,
the bank's capital requirement exceeded Rs. 745 million. By the same period,
its assets totaled Rs. 5.2 billion, with deposits reaching Rs. 3.8 billion.
In 2022, the microfinance bank, with four foreign bankers on
its board, aimed to extend its operations nationwide. However, ongoing losses
in 2023, amounting to a loss after tax of Rs. 228 million by September,
prompted a strategic shift. The bank's losses were exacerbated by the COVID-19
pandemic and floods in Sindh, impacting borrowers and hindering chances of
recovery. In 2023, the parent company decided to exit Pakistan by selling its
operations to MNT Halan.
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MNT Halan, a prominent financial group in Egypt, is renowned
for digitally banking the unbanked and introducing electronic solutions to
replace cash. The bank has disbursed over $2.5 billion in loans to borrowers in
Egypt. Following the acquisition, the upcoming entity is expected to operate as
a subsidiary of MNT Halan, holding a microfinance banking license in Sindh.
The microfinance banking industry in Pakistan is undergoing
consolidation, influenced by factors such as the COVID-19 pandemic, floods, and
heightened competition in selected coverage areas, intensifying challenges for
microfinance providers.
Source: Pro Pakistani