TPL Corporation exploring to acquire majority stake in FINCA
Microfinance Bank Ltd (FMBL)
TPL Corporation Ltd announced on Tuesday that it is
exploring the possibility of acquiring a majority stake in FINCA Microfinance
Bank Ltd (FMBL) in collaboration with Abhi Ltd, a fintech specializing in
providing earned wage access to employees. TPL Corporation Ltd, a holding
company with interests in insurance, real estate, and various sectors of the
economy, revealed the consideration in a non-binding term sheet signed with
Abhi Ltd.
FMBL, positioned as one of the smaller players in the
microfinance banking sector, reported a net loss of Rs729.2 million for
January-September 2022, as per the latest available financial data. This marks
a reduction from the net loss of Rs1.3 billion during the same period in the
previous year.
HBL
Microfinance Bank's CEO joins Male Champions of Change Pakistan
In early 2023, FMBL disclosed its contemplation of merging
operations with Apna Microfinance Bank Ltd, another small micro-lender, aiming
to establish a more efficient consolidated entity. Both micro-lenders had
received conditional approval from the State Bank of Pakistan to commence
reciprocal due diligence, indicating a thorough evaluation of each other's
businesses.
Despite the announcement of a potential merger, no
subsequent public disclosures have been made. The microfinance penetration
rate, reflecting the proportion of the relevant population that has utilized
microfinance products at least once, stood at 23.1% at the end of March 2023, a
slight increase from 22.7% in the previous quarter. This indicates that over
seven in ten potential customers in the country still lack access to
microfinance services.
Garaj
partners with Mobilink Microfinance Bank to modernize branch networking
The microfinance industry comprises 12 microfinance banks,
along with 31 non-bank microfinance companies and five rural support programs operating
in the micro-lending space. Notably, the outstanding loans of the microfinance
industry surpassed the Rs500 billion mark for the first time in the
January-March quarter of 2023, with the number of active microfinance borrowers
reaching over 9.2 million, reflecting a 1.8% increase from the preceding
quarter.
Source: Dawn