Khushhali Bank, a microfinance institution (MFI) in Pakistan, has signed an agreement with Smart and Renewable Energy Solutions (SRE Solutions), a Pakistan-based firm that offers solar energy products, to provide financing for “Solar Magic Box,” a device manufactured and sold by SRE Solutions that generates electricity from the sun [1]. This partnership is expected to benefit especially rural areas that remain outside the country’s power grid. While details of financing options have not been made available, SRE Solutions usually offers the device with a partial upfront payment and monthly installments thereafter [2].
As of 2012, Khushhali Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 102 million, gross loan portfolio of USD 60 million, deposits of USD 42 million, approximately 366,000 borrowers and 459,000 depositors, return on assets (ROA) of 0.23 percent and return on equity (ROE) of 0.87 percent.
SRE Solutions was founded in 2010 in Pakistan by entrepreneurs from the US state of California to provide renewable energy solutions to people living without electricity. Its primary product is the Solar Magic Box, which is described by the firm as a “low-cost, easy plug and play” device. Financial information on SRE Solutions is not available.
By Nisha Koul, Research Associate
About Khushhali Bank: Khushhali Bank is a Pakistani microfinance bank that was founded in 2000 as part of Pakistan’s Poverty Reduction Strategy and its Microfinance Sector Development Program (MSDP). Initially operated by the State Bank of Pakistan, the country’s central banking authority, Khushhali Bank was converted into a public limited company on April 1, 2008. Its shareholders now include Habib Bank Limited, MCB Bank Limited, United Bank Limited and Allied Bank Limited. As of 2012, Khushhali Bank reported to the US-based nonprofit Microfinance Information Exchange (MIX) total assets of USD 102 million, gross loan portfolio of USD 60 million, deposits of USD 42 million, approximately 366,000 borrowers and 459,000 depositors, return on assets (ROA) of 0.23 percent and return on equity (ROE) of 0.87 percent.
Sources and Additional Resources:
[1] Khushhali Bank, “Khushhalibank and SRE Solutions join hands to provide renewable energy solutions,” http://www.khushhalibank.com.pk/media_center/SRE_Press_release.php
[2] Acumen, “Announcing Acumen’s Latest Investment: SRE Solutions,” http://acumen.org/blog/announcing-acumens-latest-investment-sre-solutions/
MicroCapital Story, May 24, 2012, “Khushhali Bank of Pakistan Takes Branches Online Allowing Customers to Be Served at Multiple Branches,” https://www.microcapital.org/microcapital-brief-khushhali-bank-of-pakistan-takes-branches-online-allowing-customers-to-be-served-at-multiple-branches/
MicroCapital Story, March 24, 2012, “Karnataka Vikas Grameena Bank Reaches $1m of Solar Power Products Financed in India,” https://www.microcapital.org/microcapital-brief-karnataka-vikas-grameena-bank-reaches-1m-of-solar-power-products-financed-in-india/
MicroCapital Story, October 25, 2011, “MicroLoan Foundation Launches Solar Power Pilot Project in Malawi to Serve Women in Microfinance Groups,” https://www.microcapital.org/microcapital-brief-microloan-foundation-launches-solar-power-pilot-project-in-malawi-to-serve-women-in-microfinance-groups/
MicroCapital Universe Profile, Khushhali Bank, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Khushhali+Bank
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