Pakistan’s financial services industry is undergoing a profound transformation. Customers increasingly expect banking to be digital, accessible and embedded into their everyday lives, while regulators continue encouraging innovation and greater financial inclusion. Meeting these expectations requires more than technology alone, it requires institutions with the financial strength to invest, scale and innovate responsibly.
That is precisely the journey ABHI Bank has been on.
Eighteen months ago, we acquired a broken bank. Through a secured lending model and a digital-first strategy, we have successfully transformed the institution in record time, delivering sustained profitability and establishing a strong foundation for long-term growth.
Our ambition is clear: to build Pakistan’s leading digital-first bank under the State Bank of Pakistan‘s Branchless Banking (BB) license, delivering technology-driven, responsible and inclusive financial services to millions of Pakistanis.
While technology powers digital banking, capital enables it.
From day one, our shareholders understood that building a scalable digital banking institution would require a strong capital base. Banking is fundamentally a business of trust, and trust is underpinned by capital. A well-capitalized bank can grow responsibly, strengthen customer and regulatory confidence, invest continuously in technology and innovation, and build the resilience needed to navigate changing economic conditions.
Our short- to medium-term strategy has therefore focused on strengthening the bank’s capital base through multiple sources. We began with significant Tier 1 capital injections by our incoming shareholders. Today, following the bank’s remarkable turnaround, sustained profitability and growing market confidence, we believe the time is right to take the next step by listing ABHI Bank on the Pakistan Stock Exchange and raising approximately PKR 2–3 billion in growth capital through an Initial Public Offering (IPO).
For us, this IPO is not merely a financing event. It is an investment in Pakistan’s digital banking future.
The additional capital will strengthen our balance sheet, expand our lending capacity, accelerate our digital banking ambitions and position ABHI Bank to capitalize on the opportunities emerging across Pakistan’s evolving financial services landscape.
Few financial institutions have completed a successful turnaround and reached this stage so quickly after an acquisition. Our decision to pursue an IPO reflects confidence in the institution we have rebuilt, the digital-first operating model we have proven and the long-term value we believe ABHI Bank can create. It also reflects the trust placed in us by our customers, partners, regulators and shareholders throughout this journey.
Our ambition is not simply to raise capital, it is to continuously build it.
Since the acquisition, we have complemented shareholder capital with approximately PKR 2.5 billion generated organically through profitability over just eighteen months. This demonstrates the strength, scalability and sustainability of our secured lending and digital-first operating model. It also illustrates how a disciplined business model can generate capital while capital continues to fuel growth.
Pakistan is ready for a new generation of challenger digital banks capable of delivering faster, more accessible and technology-enabled financial services. We believe digital banking will play a central role in expanding financial inclusion, improving customer experience and supporting the country’s broader digital economy.
The proposed IPO is a key pillar of our long-term capitalization strategy. As we continue to scale, we also intend to diversify our capital structure through Additional Tier 1 (AT1) and Tier 2 instruments, complemented by a range of credit enhancement instruments, including first-loss guarantees, pari passu portfolio guarantees, partial credit guarantees, risk participation arrangements and blended finance structures. These instruments will strengthen our balance sheet, optimize capital efficiency and support the prudent expansion of our unsecured lending business while maintaining disciplined risk management.
Equally important is our commitment to resilience. Through prudent provisioning under the IFRS 9 framework, we continue to build expected credit loss reserves that enhance our ability to absorb future economic shocks while reinforcing the bank’s long-term financial strength.
The proceeds from the IPO will accelerate the next phase of our growth by expanding our Banking-as-a-Service platform, strengthening our digital banking rails and scaling our secured lending franchise through our omnichannel network of 114 customer touchpoints. Every rupee of capital raised will be deployed with one objective: building a stronger, more resilient and more scalable digital bank.
We are confident investors will recognize the long-term value ABHI Bank is creating. More importantly, we hope this IPO demonstrates how Pakistan’s capital markets can become stronger partners in financing fintech innovation, digital banking infrastructure and sustainable financial inclusion.
For ABHI Bank, going public is about much more than raising capital.
It is about building the financial strength required to shape the next chapter of digital banking in Pakistan.
The journey has only just begun.
Kabeer Naqvi – The writer is an industry veteran currently serving as Entrepreneur in Residence with the Abhi Group, responsible for building its digital bank in Pakistan. He is also the former chairman of the Pakistan Microfinance Network and President & CEO of U Microfinance Bank.
