MICROCAPITAL BRIEF: Pakistan’s Apna Obtains Nationwide Microfinance Banking License

The State Bank of Pakistan (SBP), the country’s central bank, recently issued a nationwide microfinance banking license to Apna Microfinance Bank (Apna MFB) thereby enhancing its status from that of a district-based bank. This license permits Apna MFB to expand its operations outside the city of Karachi, Pakistan, where it operates five branches. The Pakistan-based United International Group acquired a majority stake in Apna MFB in late 2011 under an agreement with the SBP that United International would complete the steps necessary for Apna MFB to acquire such a license. This nationwide microfinance banking license is the tenth of its kind issued by SBP [1].

For the year 2013, Apna MFB, which was formerly known as Network Microfinance Bank, had a gross loan portfolio of USD 3.2 million outstanding to 8,606 active borrowers, and deposits of USD 7.2 million from 31,812 depositors, as reported to the US-based nonprofit Microfinance Information Exchange (MIX). Its total assets were reported at USD 12.4 million.

By Arpita Sarkar, Research Associate

About Apna Microfinance Bank (Apna MFB):

Apna Microfinance Bank of Pakistan, formerly known as Network Microfinance Bank Limited (NMB) was established in January 2005 as a public limited company listed on the Karachi Stock Exchange. It was initially known as the Network Leasing Corporation Limited, a micro-leasing institution established in 1995. In January 2012, NMB, at that time a part of Pakistani financial services institution JS Group, was bought by the Pakistan-based United International Group and renamed Apna Microfinance Bank. The mission of Apna MFB is “to provide access to a complete range of formal banking services to micro entrepreneurs engaged in income generating activities and to under privileged people on an ongoing basis.” For the year 2013, Apna MFB had a gross loan portfolio of USD 3.2 million outstanding to 8,606 active borrowers, and deposits of USD 7.2 million from 31,812 depositors, as reported to the US-based nonprofit Microfinance Information Exchange (MIX). Its total assets were reported at USD 12.4 million.

Sources and Additional Resources:

[1] Pakistan Today: “SBP issues 10th microfinance banking license to Apna MFB,” http://www.pakistantoday.com.pk/2015/06/24/business/sbpissues-10th-microfinancebanking-license-to-apna-mfb/

MicroCapital, January 20, 2012, “United International Group (UIG) of Pakistan to Purchase Network Microfinance Bank (NMB), Rename it as Apna Microfinance Bank,” https://www.microcapital.org/microcapital-brief-unitedinternational-group-uig-ofpakistan-to-purchase-networkmicrofinance-bank-nmb-renameit-as-apna-microfinance-bank/

MicroCapital Universe Profile: Apna MFB, https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Apna+Microfinance+Bank+%28formerly+Network+Microfinance+Bank%29

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