HBL Microfinance Bank Overview and Major Investments

HBL Microfinance Bank is a leading microfinance institution in Pakistan, offering a range of financial services to underserved communities.

The bank was established in 2008 with an initial investment of PKR 2 billion.

HBL Microfinance Bank has a strong network of 150 branches across the country, providing access to financial services for over 1 million clients.

Its services include microfinance, savings accounts, and remittances, catering to the diverse needs of its customers.

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HBL Microfinance Bank has a rich history that dates back to 2002 when it was founded as The First MicroFinanceBank Ltd, Pakistan (FMFB-P).

It was created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme (AKRSP), a development programme active in Gilgit-Baltistan and Chitral.

This transformation marked the beginning of HBL Microfinance Bank's journey to provide financial services to underserved communities.

The Aga Khan Rural Support Programme was already active in these regions, working towards development and poverty alleviation.

HBL Microfinance Bank's foundation was a significant step towards expanding access to financial services in these areas.

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HBL Microfinance Bank and HBL Zarai Services Limited have entered a strategic partnership to empower farmers through improved access to financial and agricultural support services.

This partnership aims to foster sustainable agricultural development and enhance rural livelihoods. HBL Microfinance Bank will establish a presence at HBL Zarai's Deras, offering microfinance products tailored to the needs of smallholder farmers.

HBL MfB has extensive expertise in providing financial solutions to smallholder farmers. HBL Zarai's Deras will serve as key touchpoints for farmers to access HBL MfB's financial services.

As Pakistan's largest microfinance bank, HBL MfB has been driving financial inclusion for rural households, particularly those engaged in agriculture. This partnership extends HBL MfB's outreach through HZSL's network of Zarai Deras and Zarai Dost outlets.

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HBL Microfinance Bank has a well-defined ownership structure, with Habib Bank Limited (HBL) holding the majority stake of 76.42%.

HBL's significant shareholding is a testament to its commitment to the bank's success. The bank's majority stakeholder, Habib Bank Limited, has a substantial influence over the bank's operations and decision-making processes.

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The bank's ownership structure also includes other notable stakeholders, such as the Aga Khan Agency for Microfinance (AKAM), Aga Khan Rural Support Programme (AKRSP), and Japan International Cooperation Agency (JICA), which hold 14.16%, 5.23%, and 4.19% stakes respectively.

Habib Bank Limited (HBL) is planning a significant investment in its microfinance bank. The bank's Board of Directors has approved an equity investment of up to Rs6 billion in its subsidiary, HBL Microfinance Bank Limited (HBL MfB).

This investment will further strengthen HBL MfB, which is the largest microfinance bank in Pakistan. The bank operates over 200 locations across the country.

HBL MfB was established in 2002 as a nation-wide microfinance bank, licensed by the State Bank of Pakistan. It was created through a structured transformation of the credit and savings section of the Aga Khan Rural Support Programme (AKRSP).

This investment is a significant step towards expanding financial services to underserved communities in Pakistan. The bank's subsidiary, HBL MfB, operates in various locations across the country.

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Habib Bank Limited (HBL) has a significant majority stake in the bank, owning 76.42% of the shares.

The majority stake is held by Habib Bank Limited (HBL), with a 76.42% shareholding.

Aga Khan Agency for Microfinance (AKAM) is another major shareholder, holding 14.16% of the shares.

Other notable shareholders include Aga Khan Rural Support Programme (AKRSP) with 5.23% and Japan International Cooperation Agency (JICA) with 4.19%.

Here's a breakdown of the major shareholding: