Pakistan: PTCL Injects PKR 4 Bln in U Microfinance Bank
Pakistan, January, 08 2019 -
The capital injection will enable the bank to further capitalize on the growth opportunities in Pakistan’s microfinance sector, the company said.
Pakistan Telecommunication Company Limited (PTCL) said it signed an agreement to provide a PKR 4 billion loan to its subsidiary U Microfinance Bank. The capital injection will enable the bank to further capitalize on the growth opportunities in Pakistan’s microfinance sector, the company said.
The unsecured Tier 2 debt facility will enable U Bank to expand its customer reach in the under-served population. U Microfinance Bank plans to use the funds in its business operations and expansion plans. The loan will also contribute to U Bank’s Supplementary/Tier 2 Capital for Capital Adequacy Ratio (CAR) as per the guidelines set out by the central bank.
U Microfinance Bank serves more than 850,000 customers, of which over a fifth are women. At the end of 2018, U Bank’s deposit portfolio was worth PKR 19 billion, up from PKR 12 billion a year earlier. The loan portfolio grew from PKR 10.6 billion to PKR 17.0 billion in 2018, and the number of employees increased from to 1,321 to 1,980.