HBL Announces Rs. 6 Billion Equity Investment in HBL Microfinance Bank Ltd
Habib Bank Ltd (HBL) has recently disclosed its decision to inject up to Rs. 6 billion in equity into its subsidiary, HBL Microfinance Bank Ltd (HBL MfB), as confirmed in a notification to the Pakistan Stock Exchange (PSX) on Tuesday.
Established in 2002, HBL Microfinance Bank Ltd has been a pivotal player in Pakistan’s microfinance landscape, holding a nationwide presence with approximately 203 branches. Originally stemming from the Aga Khan Rural Support Program (AKRSP), a longstanding developmental initiative dating back to 1982 in Gilgit-Baltistan and Chitral, HBL MfB has since evolved into a significant financial institution catering to the underserved segments of the population.
In its recent financial performance for the year 2023, HBL Microfinance Bank showcased robust growth, solidifying its position as the country’s largest microfinance bank. Notably, the bank recorded a 14% surge in its loan portfolio, amounting to Rs. 97.6 billion, while deposits saw a commendable uptick of 10%, reaching Rs. 128 billion. With a clientele base of 3.7 million, of which 33% are women, the bank underscores its commitment to fostering financial inclusivity, particularly among female demographics.
Moreover, HBL MfB has emerged as a key player in facilitating housing finance for microfinance clients, boasting a portfolio of Rs. 34 billion. Additionally, its lending endeavors in the agriculture sector have earned recognition, with a portfolio valued at Rs. 54 billion, making it the second-largest agricultural lender after HBL. The State Bank of Pakistan (SBP) has designated HBL MfB as the agriculture Champion Bank for Gilgit Baltistan, entrusting it with the responsibility of spearheading agricultural banking strategies in the region.
Furthermore, the bank’s engagement with various stakeholders reflects its proactive approach towards addressing region-specific challenges, particularly in the realm of agriculture. As of the end of 2023, HBL Microfinance Bank commands a notable 23% market share in agriculture financing, further consolidating its position as a leading financial institution in the microfinance sector.
With the recent equity infusion by its parent company, HBL Microfinance Bank is poised to fortify its market presence and further augment its efforts towards fostering financial empowerment and inclusive growth across Pakistan.
