VIS Reaffirms Entity Ratings of U Microfinance Bank Limited

Karachi, June 10, 2024: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of U Microfinance Bank Limited (‘UMBL’ or the ‘Bank’) at ‘A+/A-1’ (Single A Plus/A-One). The medium to long-term rating of ‘A+’ denotes good credit quality; protection factors are adequate, though risk factors may vary with possible changes in the economy. The short-term rating of ‘A-1’ indicates high certainty of timely payment, with excellent liquidity factors supported by good fundamental protection factors, and minor risk factors. The outlook on the assigned ratings is ‘Stable.’

The ratings assigned to TFC-I (Tier-II debt instrument) and TFC-II (Tier-I debt instrument) are ‘A’ (Single A) and ‘A-’ (Single A Minus), respectively. The long-term instrument ratings of ‘A’ and ‘A-’ denote good credit quality with adequate protection factors, though risk factors may vary with potential economic changes. The previous rating action was announced on April 28, 2023.

U Microfinance Bank Limited (UMBL) was incorporated in Pakistan on October 29, 2003, as a public limited company and commenced nationwide microfinance banking operations after receiving a license from the State Bank of Pakistan (SBP). UMBL launched its Branchless Banking Services (BBS) commercially after receiving SBP approval. Initially established as Rozgar Microfinance Bank Limited, the Bank was rebranded following its acquisition by Pakistan Telecommunication Company Limited (PTCL) on December 7, 2012.

The ratings assigned to UMBL reflect a strong sponsor profile and consistent demonstrated support from PTCL, which has been assigned an entity rating of ‘AAA/A-1+’ (Triple A/A-One Plus) by VIS and is co-owned by the Government of Pakistan and Etisalat International Pakistan (LLC). Sponsor support was evident in an equity injection of Rs. 1.6 billion provided as an advance for the issuance of ordinary shares during the outgoing year, and a further equity injection of Rs. 1.2 billion in cash in the ongoing year.

Moreover, the Bank had previously voluntarily adopted IFRS-9 and subsequently restated its financial statements for the year 2022, significantly enhancing provision requirements as directed by SBP to the Bank’s Board to align with the implementation of IFRS 9. The Bank has since been recapitalized, considering the macroeconomic factors in the country, including inflation, stress on the income levels of its customer base, and challenges faced by the sector, to ensure compliance with regulatory requirements for Capital Adequacy Ratio (CAR). CAR was below regulatory requirements at the end of December 2023 and March 2024, but with equity injections and conversions of subordinated debt to equity in early 2024, the restated CAR as of December 2023 and March 2024 would have been higher than the regulatory requirement. The conversion of a tier-II capital instrument to equity also increases the room to issue further tier-II debt to reinforce capital adequacy if needed.

Profitability indicators reflect asset quality strains on both markup income generated and ECL charges. The cost of funds has risen further in line with the record level of the discount rate in 2023. Operating costs have also increased due to rising inflationary pressures and the ongoing branch expansion plan, making UMBL the largest microfinance provider in the country. Going forward, the Bank’s operating results are expected to post a turnaround in the current year with improvement anticipated in pre-tax earnings.

There has been significant growth in the Bank’s Gross Loan Portfolio (GLP), with the agriculture segment being a major driver of this expansion. Significant growth was witnessed in the gold-backed secured portfolio, which remains above the industry average. To mitigate inherent credit risks in unsecured lending, the Bank’s strategy includes gradually increasing the proportion of secured loans. Additionally, the Bank’s policy of limiting group lending in the total loan portfolio reduces credit risk. In terms of repayment structure, bullet loans are predominant; however, the Bank is now focusing on EMI loans in line with the evolving sector norms towards EMI structures, given the higher risk associated with bullet structures.

Liquidity remains sufficient. The asset-liability maturity analysis as of December 2023 indicates short-term borrowings funding longer-term commitments. Going forward, asset quality indicators and profitability trends will be monitored in terms of their effect on retaining and expanding the capital buffer over the regulatory capital requirement.

For further information on this ratings announcement, please contact:
Phone: 021-35311861-64
Email: info@vis.com.pk

Applicable Rating Criteria:

Micro-Finance Banks: Link
VIS Issue/Issuer Rating Scale: Link

PTCL Group Welcomes Banking Veteran Tooran Asif as President & CEO of U Microfinance Bank Limited

PTCL Group, the largest ICT services provider in Pakistan, is pleased to announce the appointment of seasoned banker Tooran Asif as the new President & Chief Executive Officer (CEO) of U Microfinance Bank Limited (UBank). With a distinguished career spanning over three decades in digital and retail banking, Tooran Asif is poised to steer UBank into its next phase of growth and innovation.

Prior to joining UBank, Tooran Asif was serving as CEO of KT Bank Pakistan Limited (under the formation digital bank). Previously, he was associated with Mashreq Bank UAE and held several senior appointments, including Head of Consumer Banking, where he played a pivotal role in driving the digital transformation of the consumer business. As CEO of Mashreq Al Islami, he built a robust Islamic business by enhancing the business proposition and digitalization of services.

His career also includes senior leadership roles at globally renowned institutions such as Standard Chartered Bank, Citigroup, and ANZ Bank where he honed his expertise in financial inclusion and business transformation. Mr. Asif brings several years of international experience across Asia, the Middle East, and the UK. He holds a degree in Electrical Engineering and an MBA from the Institute of Business Administration (IBA).

In his role as Chairman, Board of Directors, U Microfinance Bank and also President and Group CEO, PTCL & Ufone 4G, Hatem Bamatraf welcomed Tooran Asif aboard, expressing confidence in his ability to drive UBank forward. Hatem Bamatraf stated: “We are excited to welcome Tooran Asif as the new President & CEO of U Microfinance Bank Limited. His leadership in retail and digital banking, combined with his unwavering commitment to financial inclusion, aligns perfectly with UBank’s mission to empower individuals and businesses across Pakistan. We look forward to the remarkable milestones the bank will reach under his leadership. PTCL Group remains committed to supporting UBank’s continued growth and success.

His appointment follows the tenure of Mohamed Essa Al Taheri, who served as the Acting President & CEO during the transition period. UBank extends its heartfelt gratitude to Al Taheri for his leadership and invaluable contributions in steering the bank during this phase.

As a subsidiary of PTCL Group, UBank continues to advance its mission of empowering individuals and businesses through cutting-edge, technology-driven financial solutions. Under Tooran Asif’s leadership, the bank will focus on enhancing its digital capabilities and broadening financial access across Pakistan to drive sustainable growth and economic empowerment.

U Bank Wins Best Microfinance Bank for Islamic Retail Banking Offerings at the IRBA 2024

Islamabad, November 29, 2024 – U Microfinance Bank (U Bank) has been honored as the Best Microfinance Bank for Islamic Retail Banking Offerings in Pakistan 2024 at the 10th Islamic Retail Banking Awards (IRBA) hosted by Cambridge IFA. The award was received by Mr. Asim Anwar, Chief Business and Digital Officer at U Bank. The ceremony, held in Dubai, recognized U Bank’s trailblazing efforts and significant contributions to promoting Shari’ah-compliant financial services in Pakistan.

U Bank has established itself as a pioneer in the microfinance industry by introducing Islamic banking services at an extensive scale in Pakistan. Since the launch of its Islamic banking services in 2022, the bank has expanded its network from just five branches to a growing ecosystem of Islamic banking windows and branches, offering a comprehensive suite of Shari’ah-compliant financial products and services. This rapid growth has culminated in the achievement of a PKR 6 billion+ Gross Financing Portfolio (GFP) for Islamic Banking—a remarkable milestone within just two years.

“We are deeply honored to receive this recognition from the Islamic Retail Banking Awards 2024,” said Mr. Mohamed Essa Al Taheri, President & CEO – U Bank. “This accolade is a testament to our unwavering commitment to delivering innovative and inclusive Islamic financial solutions that empower individuals and contribute to a riba-free economy in Pakistan.”

The Islamic Retail Banking Awards, organized by Cambridge IFA, celebrate excellence and best practices in Islamic retail banking across the world. The strongest Islamic retail banks are selected based on an Islamic Banking Efficiency Study conducted by Cambridge IFA, which ranks over 150 Islamic retail banks. The awards employ a rigorous assessment process, ensuring that only the most impactful and forward-thinking institutions are acknowledged.

This award reinforces U Bank’s strategic focus on the growth of its Islamic banking services as a cornerstone of its long-term vision.

About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a wide network of branches across multiple cities and rural areas in Pakistan and offers a range of microfinance loans, deposit products, branchless banking solutions, as well as Islamic Banking services. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Bank and Fri-Chicks Sign MoU to Facilitate Existing Franchises & Future Expansion

Lahore – August 19, 2024: U Microfinance Bank, a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL), and Fri-Chicks, a rapidly growing fast-food chain in Pakistan, have entered into a strategic partnership to facilitate the expansion of Fri-Chicks’ franchise network with the provision of working capital term loans, along with cash collection and management services for its existing outlets.

Fri-Chicks, with its current 50 outlets nationwide, is set to rapidly expand by launching 100 new franchises over the next year, with U Bank’s backing. This collaboration underscores U Bank’s commitment to fostering economic growth by empowering small and medium-sized enterprises (SMEs) in Pakistan. By facilitating this expansion, U Bank not only aims to grow a thriving franchise network for Fri-Chicks, but also contribute to the creation of significant employment opportunities, further strengthening the local economy.

The partnership agreement was officiated at a recent ceremony held in Lahore, where the MoU was signed by Mr. Sarmad Pretu, Chief Commercial Officer – U Bank, and Mr. Syed H. Mehdi, CEO – Fri-Chicks, in the presence of the management members of both organizations.

Mr. Sarmad Pretu, Chief Commercial Officer – U Bank commented, “This partnership with Fri-Chicks aligns perfectly with U Bank’s vision of nurturing and supporting the growth of local businesses in Pakistan. The franchisees investing in Fri-Chicks are MSMEs and each new franchise creates close to 10 new job opportunities. As a Pakistani bank, we are proud to be providing the financial solutions needed to help a local brand like Fri-Chicks reach new heights, while we endeavor to create a positive impact on the broader economy by enabling business expansion and economic elevation.”

As stated by Mr. Syed H. Mehdi, CEO – Fri-Chicks, “Partnering with U Bank marks a significant milestone for Fri-Chicks as we aim to bring our brand to more communities across the country. With U Bank’s services, we are well-equipped to meet our expansion goals, allowing us to contribute more meaningfully to the economic landscape of Pakistan.”

Fri-Chicks has been operating in the country for over 16 years and currently has outlets spread out across Pakistan in the form of restaurants, kiosks, drive-thrus, takeaway setups, mobile trucks, and food court stalls. U Bank currently has a network of 375+ branches nationwide and offers branch and branchless banking, digital banking, corporate banking, and Islamic banking services.

About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 375+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, branchless banking solutions, as well as Islamic Banking services. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Bank and Yousuf Dewan Companies Sign MoU to Collaborate for Enhanced Affordability of EVs

U Microfinance Bank (U Bank) and Yousuf Dewan Companies have entered into a strategic collaboration to leverage their combined strengths to provide innovative financing options for customers, making the ownership of electronic vehicles more accessible and affordable.

Under this partnership, Yusuf Dewan Companies’ customers will benefit from exclusive loan offerings and bundled services for the ownership of Honri and KIA electronic vehicles, including insurance coverage and registration facilities.

The Memorandum of Understanding was signed recently in Islamabad by Mr. Mohamed Essa Al Taheri, President & CEO of U Bank, and Mr. Dewan Mohammad Yousuf Farooqui, Chairman of Dewan Group, in the presence of senior management members of both organizations.

At the signing ceremony, Mr. Mohamed Essa Al Taheri, President & CEO – U Bank commented, “We are thrilled to partner with Yousuf Dewan Companies to facilitate innovative financing solutions for customers interested in EVs. This collaboration is a significant step towards enhanced accessibility to cost-effective mobility means and will ultimately contribute to a greener future. By combining our financial expertise with Yousuf Dewan Companies’ strong market presence, we are confident in further driving technological and financial innovations that benefit all stakeholders.”

At the event, Mr. Dewan Mohammad Yousuf Farooqui, Chairman of Dewan Group, said, “This partnership with U Microfinance Bank marks a significant milestone for us in our mission to provide easy financing solutions. By making it more accessible for people to own EVs and commercial vehicles, we are enhancing individual mobility and contributing to the broader goal of a more sustainable future. Our collaboration with U Bank is a testament to our commitment to driving innovation and making impactful strides in the automotive industry in Pakistan.”

U Bank and PTET sign MoU to provide lucrative financial services to pensioners

June 06, 2024 – Islamabad: U Microfinance Bank (U Bank) and Pakistan Telecommunication Employees Trust (PTET) have entered into a strategic collaboration to provide financial services to pensioners at concessional terms.

Under this partnership, U Bank will offer tailored conventional and Islamic banking financing opportunities to 37,000+ retired pensioners being managed by PTET with the aim to financially empower the retired community and improve their economic well-being with enhanced financial inclusion.

The Memorandum of Understanding (MoU) was signed at a recent ceremony held in Islamabad by Mr. Mohamed Essa Al Taheri, President & CEO – U Bank, and Syed Mazhar Hussain, Managing Director – PTET, in the presence of the senior management from both organizations.
Mr. Mohamed Essa Al Taheri, President & CEO, U Bank, commented on the occasion, “We are delighted to partner with PTET to bring financial services to the doorstep of our esteemed retired community. Our mission is to create a more inclusive financial ecosystem, and this partnership is a significant step towards achieving that goal.”

Syed Mazhar Hussain, Managing Director, PTET reflected, “We are pleased to enter into a Memorandum of Understanding with U Bank for extending lucrative financial services, including specially designed loans at very affordable terms to our pensioners. This is a significant step forward in our resolve to facilitate our pensioners.” He said that generally banks extend financing only to in-service younger employees, but U Bank has gone an extra mile in standing for ageing pensioners’ community. “This initiave would go a long way in reducing the hardship of our pensioners in their tough times.”

This partnership also reinforces the PTCL Group’s commitment to serving the underserved segments of society and is a testament to U Bank’s dedication to the growth and development of the microfinance industry in Pakistan.

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About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 375+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, branchless banking solutions, as well as Islamic Banking services. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

About PTET:

Pakistan Telecommunication Employees Trust (PTET) is one of the largest corporate pension fund in the country. Established on 1st January 1996 vide The Pakistan Telecommunication (Re-organization) Act 1996, to disburse pension to transferred employees of former T&T and PTC. PTET keeps on taking unique initiatives for the welfare of its pensioners’ community like substantial pension increase for widows, Special Pensions for pensioners in case of daughters’ marriage and the burial charges in case of death.

U Bank and Raqami Islamic Digital Bank Enter Interoperable Partnership

Islamabad – May 12, 2024: U Microfinance Bank (U Bank) and Raqami Islamic Digital Retail Bank Ltd. (RIDBL) have entered into a strategic interoperable partnership to enable access to branch banking services to RIDBL customers through U Bank, marking a significant milestone in the digital banking landscape of Pakistan.

With this innovative collaboration, U Bank will extend the Shariah compliant services of its extensive branch and branchless banking channels, including its network of 375+ brick-and-mortar branches nationwide to RIDBL, facilitating their digital banking clientele with seamless physical Cash In/Cash Out (CICO) transaction services and other branch banking facilities. This collaboration signifies the coming together of the traditional and digital banking worlds, opening a new era of accessibility and convenience for customers across Pakistan. The regulatory framework for digital banks, which was unveiled by the State Bank of Pakistan (SBP) in January 2022, encourages such partnerships in a bid to maximize utilization of brick-and-mortar infrastructure, with specific objectives to optimize financial access to the citizenry while driving down the cost of financial services for the end customer.

The partnership was officiated in a recent ceremony held in Islamabad in the presence of Mr. Mohamed Essa Al Taheri, President & CEO of U Bank and Mr. Umair Aijaz, CEO of RIDBL, as well as the of other members of both organizations.

Mr. Mohamed Essa Al Taheri, President & CEO U Bank, stated, “With this partnership with RIDBL, we are not only facilitating transactions for a wider segment of customers, but we are furthering our agenda of financial inclusion and economic empowerment in Pakistan. At U Bank, we believe in the power of collaboration to drive positive change and we look forward to leveraging our combined strengths with RIDBL to deliver unique financial solutions in line with the evolving needs of customers.”

Commenting on the partnership, Mr. Umair Aijaz, CEO Raqami Islamic Digital Bank Ltd., stated, “At Raqami, we actively nurture the vision of a transformative banking landscape—one where accessibility evolves into empowerment. Along with U Bank, we are not merely reimagining banking; we will fundamentally reshape it, ushering in new standards for seamless Islamic digital experiences.”

Such strategic collaborations and relentless innovation open avenues to explore additional use cases to expand digital banking in Pakistan and reinforce both the organizations’ shared vision for a more inclusive and accessible banking ecosystem in the country.

About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 375+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of micro financing products, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

About Raqami Islamic Digital Bank Ltd.:

RIDBL is one of five aspirants for the Islamic digital retail bank license, which is to be awarded by the State Bank of Pakistan under the Licensing and Regulatory Framework for Digital Banks (the Framework) 2022 and after incumbents achieve operational readiness and successfully conclude a pilot. At Raqami we actively nurture the vision of a transformative banking landscape—one where accessibility evolves into empowerment. Our mission is unequivocal: to pioneer customer-centric, Shariah-compliant digital banking in Pakistan. Through the fusion of cutting-edge technology, Islamic principles of finance and an unwavering commitment to financial inclusivity, we fashion tailored solutions for the unbanked and underbanked.

U Bank Enters into Strategic Partnership with IMARAT Group for Customized Banking Services

Islamabad – May 08, 2024: U Microfinance Bank (U Bank) and IMARAT Group of Companies have entered into a strategic partnership for the provision of customized branch and branchless banking services to the IMARAT Group, including Graana and Agency21.

Under this collaboration, U Bank will be providing IMARAT Group with a range of tailor-made banking services, including employee banking for their staff members across multiple companies with complimentary insurance coverages, payroll disbursement, collection arrangements through branch banking as well as the digital network, and customized financial products designed for the employees as well as customers of IMARAT Group catering to their financial requirements and needs. The aim is to support all the relevant stakeholders, ultimately enabling overall economic growth and inclusion.

The signing ceremony was held recently in Islamabad, where the Memorandum of Understanding (MoU) was signed by Mr. Mohamed Essa Al Taheri, President & CEO – U Bank, and Mr. Shafiq Akbar, Chairman IMARAT Group, in the presence of senior management members of both organizations.

Mr. Mohamed Essa Al Taheri, President & CEO – U Bank, commented on the partnership: “At U Bank, we strongly believe in financial empowerment for all and the power of mutually beneficial collaborations with our prestigious partners to achieve that. This strategic alliance with IMARAT Group reinforces our dedication to providing comprehensive financial services tailored to the diverse needs of corporate employees and customers. We look forward to leveraging our banking expertise to contribute to their financial well-being.”

Mr. Shafiq Akbar, Chairman of IMARAT Group, commented on the collaboration, stating, “At IMARAT, we believe in simplifying and enhancing the lives of our clients by providing straightforward, personalized financial services. Our partnership with U Bank is a significant milestone that embodies this philosophy. It enables us to improve financial convenience and opportunities not only for our team members but also for our clients and partners. Ultimately, this collaboration is focused on enriching the financial health of our community and making a meaningful difference in their daily lives.”

The collaboration between U Bank and IMARAT Group marks the beginning of a promising journey towards inclusive financial services and economic empowerment, contributing to the overall prosperity of the business community in Pakistan.

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About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 375+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

About IMARAT Group of Companies:

IMARAT, a leading real estate company of Pakistan, has a comprehensive portfolio of 15+ mega projects across Pakistan. It focusses on vertical construction which reflects its belief in the upward future. IMARAT does not stop building and crafts lifestyles. With 10 million square feet currently under construction, 4 Marriott hotels, the largest estate agency network, a trusted online real estate portal, and with the digital map of the entire country, IMARAT is reshaping Pakistan’s landscape.

For further information, please visit https://imarat.com.pk/

U Bank Inaugurates its First Islamic Banking Window in Karachi

Karachi – June 04, 2024: U Microfinance Bank (U Bank) has inaugurated its first Islamic Banking Window in its branch in Karachi. This will be followed by the availability of Islamic Banking Windows across all 28 of its branches in the metropolitan city. The launch marks a significant milestone in U Bank’s mission to provide accessible and Shari’ah-compliant banking services to its customers.

The inaugural ceremony of the first Islamic Banking Window was held at U Bank’s Clifton branch and was graced with the presence of Mr. Mohamed Essa Al Taheri, President & CEO – U Bank, Mr. Syed Irfan Ali, Executive Director Financial Inclusion Group – State Bank of Pakistan as the Chief Guest, and other members of the SBP and management committee of U Bank.

Speaking at the ceremony, Mr. Mohamed Essa Al Taheri, President & CEO – U Bank stated, “Today is a significant milestone in U Bank’s journey toward inclusive banking. By introducing Islamic Banking Windows, we are expanding our service offerings and fulfilling our commitment to providing accessible banking services to all segments of society. This initiative underscores our dedication to the national agenda of financial inclusion and will contribute to the growth of Islamic banking in Pakistan.”

Mr. Syed Irfan Ali, Executive Director Financial Inclusion Group – SBP commented, “I commend U Bank for taking this initiative towards expansion of Islamic Banking Window outreach, as it has the potential to bring a positive difference to Pakistan’s economy and make Islamic microfinance banking functional in more geographic areas. Customers who do not want to avail conventional banking services will now be able to get services through Islamic Banking. I appreciate it that U Bank has invested in the capacity building of its staff by providing training in Islamic Banking services. This is a great step towards enhancing accessibility of Shari’ah-compliant financial services and we expect this move to significantly contribute to the growth of the Islamic Banking industry in Pakistan.”
The inauguration of Islamic Banking Windows is a testament to U Bank’s dedication to innovation and excellence in banking services. This is the first step in U Bank’s strategic plan to roll out these services across its network of 375+ branches throughout Pakistan. This initiative is part of U Bank’s commitment to promoting Islamic Banking in the country and enhancing financial inclusion by offering a diverse range of products and services, while adhering to Islamic principles.

• End –

About U Microfinance Bank:

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 375+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, branchless banking solutions, as well as Islamic Banking services. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Bank inks MoU with National Science & Technology Park

Islamabad – In a significant stride towards fostering innovation and entrepreneurship in Pakistan, the National Science & Technology Park (NSTP) at NUST and U Microfinance Bank (U Bank) have reached an understanding to collaborate for NSTP’s flagship programmes, including Hatch8 Incubation Programme and Rising Stars Startup Competition. Engr Javed Mahmood Bukhari, Rector NUST, and Mohamed Essa Al Taheri, President & CEO – U Bank, signed the Memorandum of Understanding (MoU) in a recent ceremony.

Mr. Mohamed Essa Al Taheri, President & CEO – U Bank apprised the Rector of various innovative fin-tech initiatives undertaken by his organisation. He also commended NUST for its myriad of nation-building initiatives, world-class educational facilities, and opportunities it offers to nurture diverse minds and drive positive societal change. Rector NUST appreciated U Bank’s commitment and professionalism and expressed confidence that the newly forged partnership would go a long way in nurturing the next generation of innovators and entrepreneurs.
Both parties also discussed and devised strategies to improve student, parent, and staff well-being, including the establishment of an endowment fund for underprivileged students.

• End –

U Bank – Empowering Women with Financial Strength and Opportunities

In the heart of Pakistan, amidst its rich history and cultural diversity, there exists a heartbreaking narrative of untapped potential and unrealized dreams, particularly among its women. Despite progress and development in various sectors, there can still be seen a gender gap and a lack of financial literacy and awareness that hinders economic enablement for women. In this context, the microfinance banking sector has played a vital role in poverty alleviation and tackling the need for financial empowerment of the people.

U Microfinance Bank (U Bank) has emerged as one of the leading microfinance banks in Pakistan, with the largest geographic footprint across the nation, as a beacon of change that strives to overcome gender-based limitations and offer financial services designed to economically enable and uplift women. In celebration of International Women’s Day 2024, we shine a spotlight on the remarkable efforts of U Bank in empowering women, under the banner of its dedicated agenda ‘U Bank Khawateen’.

U Bank is not only offering microcredit and savings facilities to foster entrepreneurial spirit in women, but is also providing its female staff with inclusive and progressive work spaces to help build themselves.

Financial Services

One of its prominent initiatives is the ‘Shana Bashana Loan,’ a tailor-made product designed to support women entrepreneurs, that provides business loans of up to 3 million rupees, enabling them with access to capital to help establish or expand their businesses and achieve financial independence. Complementing this is the ‘Rehnuma Bachat Account,’ which is a savings account designed exclusively for women and provides them with a secure avenue to save their hard-earned money, while offering lucrative returns on their deposits. This can empower them to build a strong financial foundation for themselves and their families.

Accessibility

U Bank’s wide network of 375+ bank branches spreads out to multiple urban and remote, rural locations making its financial services accessible to the women residing there. In addition to that, U Bank’s online banking facilities and the UPaisa mobile wallet play a crucial role in providing women with accessibility in the face of possible cultural or physical limitations. Its strong combination of branch and branchless banking services has complete potential to empower women by giving them control over their finances in the palm of their hands.

Employment Opportunities

One of the most impactful aspects of U Bank’s commitment is the employment opportunities it has created. Across its network in Pakistan that includes small cities and villages, U Bank provides hundreds of women with meaningful employment, helping them become financially strong, resilient, and empowered contributors to their respective communities. It is a strong part of U Bank’s ethos to provide safe and inclusive working conditions for its female staff members, helping them break barriers and reach newer heights.

U Bank continues to invest in women, inspiring their social and financial inclusion to accelerate and encourage progress for all. It stands as a beacon of hope with its belief in the fact that when women succeed, communities prosper, and progress becomes unstoppable.

Bank Alfalah Limited and U Microfinance Bank Enter into Strategic Collaboration for a Financing Facility of PKR 10bn

Islamabad – Dec 19, 2023: U Microfinance Bank (U Bank), one of the largest microfinance banks in Pakistan, has forged a strategic partnership with Bank Alfalah Limited, one of the country’s largest commercial banks, to secure a short-term financing facility of PKR 10 billion aimed to collaboratively facilitate U Bank’s corporate funding.

The collaboration was officiated in a formal ceremony held recently in Karachi, where Mr. Mohamed Essa Al Taheri, President & CEO – U Bank, and Mr. Atif Bajwa, President & CEO – Bank Alfalah, signed a Memorandum of Understanding in the presence of key management representatives from both the organizations.

The ceremony underlined resilience and harmony within the financial sector in Pakistan and signified a collective effort to drive positive change and a shared commitment towards financial inclusion.

Mr. Mohamed Essa Al Taheri, President and CEO – U Bank, spoke about the collaboration: “We are delighted to enter into this strategic alliance with Bank Alfalah that significantly contributes to our efforts towards offering inclusive financial products and services to the underbanked population, expanding our outreach further to more regions of Pakistan, and driving overall economic development in the country. At U Bank, we work towards creating real and meaningful impact in communities we serve, and this collaboration enables us to achieve that.”

Mr. Atif Bajwa, President and CEO – Bank Alfalah, expressed on the collaboration: “The extension of this fully underwritten facility seeks to strengthen our partnership with U Microfinance Bank and reflects our commitment to promote financial inclusion in Pakistan. Our shared goal is to ultimately empower underserved communities and drive inclusive economic growth.”

The partnership signifies a pivotal move to strengthen relations between the two banks and to enhance U Bank’s efforts towards financial inclusion in Pakistan. With this financing facility, U Bank aims to fortify its endeavors towards further building the microfinance sector in Pakistan and pursue strategic initiatives that contribute to the bank’s sustained growth.

Bank Alfalah’s role in providing a PKR 10 Billion facility highlights its commitment to supporting key players in the financial sector, aligning with its broader strategy of fostering growth in banking in Pakistan. This collaboration stands as a testament to the dynamic and cooperative spirit within the local banking industry, and sets a precedent for future synergies that enable collective progress.

Mr. Mohamed Essa Al Taheri joins U Microfinance Bank as Acting President & CEO

October 19th, 2023 – Islamabad: U Microfinance Bank is pleased to announce the appointment of Mr. Mohamed Essa Al Taheri as the Acting President & CEO of U Bank. We welcome him onboard!

Mr. Al Taheri has been associated with U Bank as a Member of the Board of Directors and worked with e& Group as the Group EVP Financial Policies and Systems. He holds a Master’s degree in International Business from the University of Wollongong, Dubai, and brings over 20 years of professional experience from working with HSBC Bank, Dubai Commercial Bank, and the Development Board of Dubai Government.

The appointment of Mr. Essa Al Taheri comes soon after the resignation of Mr. Kabeer Naqvi, who earlier held the position of President & CEO of U Bank. Mr. Naqvi leaves behind a remarkable legacy of progress, innovation, and exponential growth during his tenure at the bank. He was associated with U Bank since 2015 and led it with vigor and a drive to create an impactful difference in the microfinance industry of Pakistan.

U Bank remains committed to its mission of empowering individuals and businesses through accessible financial services and ensuring financial inclusion for all segments of Pakistani society.

U Microfinance Bank posted a Net Profit of 1.7 billion for the nine-months ended 30th September, 2023

December 5, 2023 – Islamabad: U Microfinance Bank Limited, Pakistan’s fastest-growing microfinance bank, has announced financial results for the nine months ended September 30th, 2023. The announcement was made during the Board of Directors’ meeting held in Islamabad on December 5th, 2023.

The latest financial results underscore U Bank’s continued growth trajectory and bear testament to its unwavering commitment to banking excellence and the financial empowerment of its customers. In the first nine-months of 2023, U Bank has continued its performance and reported a total revenue of PKR 33.4 billion, with a promising growth of 135% as compared to the same period of last year. The bank has reported a Profit After Tax of PKR 1.7 billion, with a remarkable growth of PKR 2.2 billion as compared to the corresponding period’s nine-month ended loss (Restated) of PKR 513 million. Total Deposits of the bank stood at PKR 103 billion with a growth of 44% YoY, while the Gross Loan Portfolio amounting to PKR 72.5 billion exhibited an impressive growth of 59% YoY.

Mr. Mohamed Essa Al Taheri, President & CEO – U Microfinance Bank Limited stated, “Our latest performance results reflect the hard work and dedication of our teams. We have always had full confidence in our institution’s ability to navigate challenges and remain profitable. U Bank remains steadfast in its core mission of promoting financial inclusion for all and contributing to the economic prosperity of the people of Pakistan. We look forward to a future of sustained growth while we continue our endeavor to expand our outreach and make a positive impact on the lives of the communities we serve.”

As a beacon of financial inclusion, U Bank continues to exhibit strong financial management and performance, a far-sighted business sustainability strategy, and a consistent commitment towards financial inclusion in Pakistan. The bank has been ranked as A+ for its long-term credit rating by PACRA and VIS Credit Rating agencies, while its expanding network of brick-and-mortar branches has crossed 350 in number across rural and urban regions of the country. It continues to play a pivotal role in economically uplifting lives, catering to customers of all socioeconomic segments, through its diverse portfolio of deposit and loan products, including digital banking, Islamic banking, and corporate banking services.

The financial statements can be viewed here: https://ubank.com.pk/Downloads/FS-30Sept2023.pdf

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About U Microfinance Bank
U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 350+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Bank Empowering a Sustainable Tomorrow with PKR 1.85 Billion Disbursed in Solar Financing

Media coverage over the past few months has largely been focused on the recent record-breaking inflation levels in Pakistan and the consequential exponential rise in electricity prices. Under rising economic uncertainty, the residents of Pakistan have greatly struggled with a persistent energy crisis and have continued to rely heavily on costly fossil fuels for power generation, burdening households and industries in urban and rural centers alike. Households have been left with bare minimum savings and disposable income to improve their current living situations. Moreover, climate change looms as a growing significant threat, with rising temperatures and unstable weather patterns leading to energy demand spikes which is pushing prices further up, while the depletion of non-renewable energy sources continues to add to the pressing environmental concerns.

In this context, the adoption of solar energy presents a promising solution and U Microfinance Bank has risen to the occasion with its Solar Financing facility. U Bank has successfully disbursed Solar Financing loans of a total of PKR 1.85 Billion across Pakistan, keeping up with the requirements of the market and with a firm focus on sustainable business solutions. Designed to empower customers with cost-effective solutions that can enable them to save more, U Bank’s Solar Financing facility currently has catered to over 1,500 customers across different socio-economic and regional segments of the country to help them install solar panels at their premises.

U Bank is one of Pakistan’s fastest-growing microfinance banks with a network of over 350 branches nationwide, catering to a wide population of urban, rural, Islamic, corporate, and digital banking customers. With an aim to be groundbreaking in its endeavors towards a greener and more sustainable future, U Bank has proudly endorsed its Solar Financing service catering to the diverse needs of individual households, farmers, as well as small enterprises.

At the forefront of this initiative is not only the bank’s commitment to a sense of environmental responsibility but also to reduce the financial burden on individuals. The Solar Loan provides significant financial benefits for its users, reducing their dependence on costly electricity and enabling them to save up more. They can ultimately increase their disposable income that can be redirected towards other life goals, like better education prospects for their children, an enhanced lifestyle, etc.

Brightening Up Homes with Affordable Solar Financing

U Bank offers Solar Financing facilities to individuals for their households, recognizing the necessity of switching to solar energy sources in the face of rising load shedding and electricity costs. Through this facility, homeowners can afford to install economically-viable solar panels at their residences at competitive interest rates and flexible repayment options, significantly reducing their traditional electricity usage, bills, as well as carbon footprint. Individual households can become financially stronger with higher prospects of saving and future investment.

Energizing Agriculture and Enabling Farmers’ Success

Agriculture is the backbone of Pakistan’s economy and plays a pivotal role in its annual GDP. Acknowledging this amidst a shortage of traditional electricity supply to remote rural locations, U Bank extends its Solar Financing facility to farmers looking to power their tube wells as well as their homes sustainably. By investing in solar panels, farmers can not only reduce operational costs but also contribute to a cleaner and greener environment. This also enables them to have access to electricity in regions where electricity infrastructure supply is limited. True to its mission of financial inclusion and uplifting the lives of the communities it serves, U Bank’s commitment to the agricultural sector goes beyond financial assistance – it reflects a dedication to the sustainability of agricultural practices and the prosperity of the farming community, enabling them to earn better and save more for their future.

Powering Businesses through Sustainable Energy

For businesses and enterprises, U Bank’s Solar Financing facility opens doors to cost-effective energy solutions. With the constant threat of inflation and rising operational costs, investing in solar energy can be a crucial success factor for business sustainability, while contributing to a cleaner, greener planet. Through its wide network of 350+ bank branches, a majority of which operate in rural remote regions of Pakistan, U Bank’s Solar Financing empowers small businesses to sustain themselves at minimal costs.

Pakistan receives abundant sunlight throughout the year, making it an ideal candidate for harnessing solar power. Yet, the country reportedly only produces a meager 1.16% of its electricity through solar power and 64% with fossil fuels. An elaborate shift towards solar energy can not only help mitigate rising electricity bills and elevate inflationary pressures, but it also empowers a sustainable, renewable energy source that aids in environmental stability, curbing greenhouse emissions, and combating climate change for public health. In a country grappling with the challenges of inflation and climate change, it has become increasingly necessary to chart a path towards a better, more sustainable future. In a time of economic challenges, U Bank’s Solar loans have emerged as a beacon of hope for the people of Pakistan. By enabling individuals, farmers, and businesses to embrace solar energy, U Bank is empowering people while contributing to a more sustainable and resilient economy.

U Bank Pledges Commitment to Inclusivity on International Day of Persons with Disabilities 2023

December 4, 2023 – Islamabad:

U Microfinance Bank, Pakistan’s fastest-growing microfinance bank, proudly pledged its unwavering commitment to financial inclusion, increased accessibility, and the provision of enhanced opportunities for Persons with Disabilities (PWDs) on the International Day of Persons with Disabilities – 2023.

U Bank remains dedicated to making a positive impact on the lives and livelihoods of its stakeholders across all population segments in Pakistan. Under its commitment towards PWDs, U Bank strategically collaborated with the Special Talent Exchange Program (STEP) to conduct a comprehensive Accessibility Audit of its premises across the country. This initiative aimed to ensure access for PWDs to U Bank’s financial products and services and bore testament to the bank’s dedication to breaking barriers and fostering an environment of equal banking opportunities.
Multiple training sessions were also held for U Bank’s staff members in collaboration with STEP, focused on creating awareness and encouraging empathy, while also ensuring seamless integration of PWDs into the workforce. U Bank consistently cultivates an inclusive workplace culture to contribute to a compassionate and supportive work environment.

With this commitment, U Bank also announces the successful conclusion of the first batch of its Internship Program dedicated exclusively to Persons with Disabilities, providing them with equal growth and learning opportunities and nurturing talent in an inclusive employment landscape.
Speaking on the occasion and the valuable initiatives, Mr. Mohamed Essa Al Taheri, President & CEO – U Bank commented, “As we commemorate the International Day of Persons with Disabilities, I am proud to affirm U Bank’s unwavering commitment to fostering inclusion across multiple dimensions. Our focus extends beyond providing accessible financial solutions, to creating an inclusive work environment that values the diverse talents and skills of every individual. We believe firmly in providing equal opportunities, in line with our core mission of financial inclusion, and will continue to work towards shaping a more empowering tomorrow for all.”

U Bank currently has an extensive network of 350+ bank branches across multiple rural and urban regions of Pakistan, which includes remote, last-mile locations as well. Through its broad outreach, U Bank continues its endeavors to provide valuable financial services aimed at economically uplifting communities across all socioeconomic segments of Pakistan.• End –

About U Microfinance Bank

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 350+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Bank Ranked as the Top Microfinance Agriculture Credit Performer by SBP

Islamabad – August 11, 2023:

U Microfinance Bank, Pakistan’s fastest-growing microfinance bank, has been lauded for its ‘Exceptional’ performance in agricultural credit in Pakistan, for Fiscal Year 2023, as rated by the State Bank of Pakistan (SBP). With this, U Bank is leading the microfinance industry in agri-loans in the country with the highest score.

U Bank has achieved a commendable score of 80.6 in SBP’s Agriculture Credit Scoring Model, which utilizes multi-dimensional criteria to evaluate and improve agriculture financing by banks in Pakistan. This score is also the highest amongst all banks in the country, making U Bank one of the top contributors to the impressive growth of 25 percent in agriculture credit disbursement in Pakistan in FY2023, as reported by the SBP recently.
For the recognition of the bank’s efforts, Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank stated, “The SBP has played a key role in revitalizing and supporting the agriculture sector in light of the destruction caused on the country’s farmlands by last year’s devastating floods. We are glad to have achieved this milestone that demonstrates U Bank’s unwavering commitment to fostering financial inclusion and empowering the backbone of our society – the agricultural industry.”

As one of the leading microfinance banks in Pakistan, U Bank remains steadfast in its mission to facilitate economic growth in both rural and urban sectors.

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About U Microfinance Bank

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 300 branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Microfinance Bank Announces Continued Profitability in Latest Financial Results

December 1st, 2023 – Islamabad:

U Microfinance Bank, Pakistan’s fastest-growing microfinance bank, has published its financial results for the half year ended 30th, June 2023, at its Board of Directors’ meeting held in Islamabad on November 30th, 2023.
During the first half of 2023, the bank reported a revenue of PKR 21.5 Billion with a growth of 133% as compared to the corresponding period of last year, and also announced a Profit After Tax of PKR 1.4 Billion with a growth of PKR 1.6 Billion as compared to corresponding period half-year loss (restated) of PKR 175 Million.

Being one of the leaders in the microfinance landscape in Pakistan, U Bank’s Gross Loan Portfolio stood at PKR 65.5 Billion, reflecting the high demand for its diverse portfolio of financial products and services catering to the banking needs of multiple population segments of Pakistan.
U Bank’s sustained growth and stability are proudly reaffirmed by the A+ long-term entity ratings with a ‘Stable’ outlook, as given to it by PACRA and VIS Credit Rating agencies in Pakistan. These ratings reflect U Bank’s promising business strategy and solid foundation ensuring reliability and financial strength.
In addition to its healthy banking performance, U Bank also continues to have strong confidence and unwavering support from its parent company, Pakistan Telecommunication Company Ltd. (PTCL) which has injected PKR 1.6 Billion into the bank, reinforcing its ability to uphold business growth.
U Bank continues on its journey towards its core mission of financial inclusion for all of Pakistan, with its extensive network of 350+ branches spanning rural and urban regions across the country, catering to customers of all socioeconomic segments, and offering a diverse portfolio of deposit and loan products, including digital banking, Islamic banking, and corporate banking services. The bank remains steadfast in its commitment to creating a positive impact in the communities it serves, contributing to inclusive growth and economic empowerment in Pakistan.

The financial statements can be viewed here: https://ubank.com.pk/Downloads/FS-30June2023.pdf

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About U Microfinance Bank

U Microfinance Bank Ltd. (U Bank) is a wholly-owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) – e& Group (formerly known as Etisalat Company). The bank has a network of more than 350+ branches, across 210 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products, and branchless banking solutions. U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited).

U Microfinance Bank partners with foodpanda to provide Motorbike financing opportunities to riders

Karachi – December 02, 2022:

Foodpanda, the country’s leading online delivery service provider, has entered into a strategic partnership with U Microfinance Bank (U Bank), Pakistan’s fastest-growing microfinance bank, to provide motorbike financing opportunities for its delivery riders. Through this partnership, foodpanda riders will have access to relevant financing facilities to acquire motorbikes on easy monthly installments.

The Memorandum of Understanding (MoU) of this partnership was signed by Ms. Mariam Pervaiz, Chief Commercial Officer & Chief of Staff – U Microfinance Bank and Mr. Muntaqa Peracha, Managing Director & CEO – foodpanda, while the signing ceremony was presided over by Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank in the presence of senior management officials from both the collaborating organizations.

Commenting on the partnership, Mr. Muntaqa Peracha, Managing Director & CEO – foodpanda said, “foodpanda is not just a delivery platform that provides sustainable income opportunity to its riders but also puts their welfare as a priority. We are excited to partner with U Microfinance Bank that will benefit and create an impact in improving the lives of our riders.”

“Partnerships like this will not only cater to the needs of our riders but will also result in better service to our customers,” he further added.

Speaking at the occasion, Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank said, “At U Bank, we have consistently been fostering strategic partnerships with various organizations to expand our outreach while uplifting the masses. These partnerships not only are mutually beneficial, but overall help us create synergy and harmony amongst the industries in Pakistan. We are glad to be entering into this collaboration with foodpanda and hope this loan facility can assist people towards having better employment opportunities and decent, sustainable livelihoods for themselves.” With this partnership, U Microfinance Bank will be extending credit facilities to foodpanda riders, along with a host of other banking services.

U Microfinance Bank receives commercial license for extending nationwide Islamic Banking services

Islamabad – November 24, 2022:

U Microfinance Bank (U Bank), Pakistan’s fastest-growing microfinance bank, has received the commercial license for launching full-scale Islamic Banking services across Pakistan.

U Bank commenced its pilot Islamic Banking operations earlier this year, starting with five branches, and later on extended it further across the country to include cities of Karachi, Lahore, Peshawar, Gujranwala, Sahiwal, and many more. After its promising performance, U Bank has now received the license from the State Bank of Pakistan (SBP) to commercially launch its Islamic Banking branches across Pakistan.

Speaking on this remarkable new feat, Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank stated, “I am glad to announce that we are now spearheading Islamic Banking in the microfinance ecosystem in Pakistan. This is a landmark achievement for the microfinance industry in general and U Bank in particular. This step will enable the bank to further the agenda of financial inclusion by catering to the Shari’ah-based banking needs of the people. There is a huge unmet demand for Shari’ah-based banking services and U Bank is looking forward to playing a significant role in bridging this gap. This is just the beginning – with continued support from the SBP, we will be penetrating further into Pakistan, bringing us closer to our ambition of bringing the unbanked population into the banking net and serving all segments of the society.”

U Bank Islamic Banking provides a full suite of tailor-made, Shari’ah-compliant financial solutions to its customers. Its product offerings include financing facilities against housing, business, and agricultural needs of up to PKR 3 million, along with Current, Savings, and Term Deposit account services.

U Microfinance Bank, MMBL sign MoU to offer Housing Finance Solutions for their Employees

Islamabad – October 17, 2022:

U Microfinance Bank Ltd. (U Bank), Pakistan’s fastest-growing microfinance bank, and Mobilink Microfinance Bank Limited (MMBL), Pakistan’s largest digital bank, have entered into a strategic partnership for providing housing finance facility for their employees.

The MoU was signed between Mr. Ghazanfar Azzam, President & CEO – MMBL, and Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank, at a ceremony held in Islamabad, in the presence of senior officials from both organizations. Under this partnership, U Bank and MMBL employees will be able to seek housing finance from each other. Eligible employees would have the opportunity to access affordable housing finance of up to PKR 3 Million, and can purchase a new house, flat, apartment, or plot for construction, as well as construct a house on a pre-owned plot or add an extension to an existing housing unit. The loan application process has been simplified to facilitate fast-track processing and efficient disbursement of the loaned amount.

“Financial inclusion is not merely a customer-facing ambition but rather encompasses any and all people who wish to upgrade their quality of living through economic empowerment”, said Ghazanfar Azzam, President & CEO, MMBL. “As an employer of choice, we are vigilant of opportunities to holistically support our greatest asset- people, as much as possible. This partnership with U Bank will help enable our valued human resources with financial security during the uncertain economic conditions of the modern era,” remarked Azzam. Also sharing his thoughts, Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank said, “Our people are our most valuable asset and our aim is to continue to provide services which will improve wellness and living standards of our people. Our people are at the heart of who we are. We are pleased to collaborate with MMBL to facilitate employees on both sides. This also reaffirms U Bank’s belief that the microfinance industry as a whole can synergize and work in harmony to attain mutual goals.”

U Microfinance Bank Islamic Banking receives international recognition during the 8th Islamic Retail Banking Awards

Islamabad – December 14, 2022:

U Microfinance Bank (U Bank) Islamic Banking has received the prestigious international award for Upcoming Islamic Retail Banking Window in Pakistan 2022 during the 8th Islamic Retail Banking Awards 2022, hosted by Cambridge IFA in Indonesia.

The award honors U Bank’s recent introduction of Shari’ah-compliant financial solutions in Pakistan, and comes soon after U Bank’s full-scale commercial launch of Islamic Banking services nationwide. The bank’s Islamic Banking services were piloted earlier this year and have now encompassed many cities across Pakistan, thus financially including the segment of society that seeks banking services in line with Islamic values.

Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank shared, “It is an honor for us to be recognized for the efforts towards making U Bank one of the first microfinance banks in Pakistan to introduce Islamic Banking services. With an enhanced deposit and financing products portfolio that complies with the Shari’ah principles, we will continue to accelerate our Islamic Banking expansion efforts to serve customers across Pakistan.”

The Islamic Retail Banking Awards developed by Cambridge IFA are based on the most academically rigorous analysis of global Islamic Banking efficiency performance. The participating banks are assessed by independent experts and honor institutions that have made a significant contribution towards the growth and success of Islamic Retail Banking around the world. Previously, U Bank Islamic Banking has also received the award for the Islamic Banking Initiative of the Year – Pakistan from the Asian Banking & Finance Retail Banking Awards 2022. U Bank Islamic Banking provides a full suite of tailor-made, Shari’ah-compliant financial solutions to its customers. It offers financing of up to PKR 3 million, which includes Diminishing Musharakah financing for low-cost housing, Murabaha financing for MSMEs, and Salam financing to help fulfill agricultural needs. In addition, U Bank Islamic Banking offers Current, Savings, and Term Deposit account services to its customers, along with BancaTakaful products in collaboration with its corporate partners.

PACRA Upgrades Entity Ratings of U Microfinance Bank Limited

**PRESS RELEASE**

The Pakistan Credit Rating Agency Limited
Date: 16-Sep-22
Analyst: Sehar Fatima
sehar.fatima@pacra.com
+924235869504
[www.pacra.com](http://www.pacra.com)

Related Research
Sector Study | Microfinance | Sep21

PACRA Upgrades Entity Ratings of U Microfinance Bank Limited

Entity	Rating Type	Current (16-Sep-22)	Previous (18-Aug-21)
	Action	Upgrade	Maintain
	Long Term	A+	A
	Short Term	A1	A1
	Outlook	Stable	Stable
Rating Watch		– Yes

The ratings reflect the association of U Microfinance Bank Limited (U Bank) with Pakistan Telecommunication Company Limited (PTCL), the country’s leading Information and Communication Technology Service Provider. This affiliation supports the Bank in terms of building a strategic congruence alongside establishing robust systems and controls. U Bank is a fastgrowing player in the Microfinance Sector. The Bank’s ambitious growth strategy encompasses multifaceted targets focused on achieving growth in the retail banking segment, and developing a digital banking platform. Going forward, the envisaged strategy encompass diversification at segmental, geographical, and product level. A sizeable book of GOP securities (endJune22: PKR 27.7bln) in the investment portfolio assisted in maintaining liquidity. The Bank’s digital segment is yet to progress a long way to mark its presence in the competitive landscape; the mix is currently small. Almost half of the Bank’s portfolio is goldbacked. Asset quality was impaired, as deferred book to total GLP was significant. To build a cushion, the Bank has recognized a sizable subjective provision in order to add a further cushion for absorption of expected loan losses. This provides a strong mitigant against potential credit risk. The investment income stream has helped the bank to bolster its profitability through this avenue. SBP’s recent circular pertaining to further relaxation in recording provisioning expense of NPLs is expected to bring reversal. Sizable enhanced markup and nonmarkup income provide comfort. The Bank’s funding needs are primarily fostered through a growing deposit base, coupled with sizable borrowings. The ratings are constrained by high concentration in deposit base; increased on account of gaining. The strengthening of the equity base over the last few years is a positive. The industry’s few parameters are deteriorating on account of pressured macroeconomic indicators, attributable to the aftermath of the COVID19 and recent flood situation. The relative impact on the risk profiles of industry players is yet to unfold in the days to come. The ratings are dependent upon the Bank’s ability to aptly combat the emerging risks under the current scenario in order to keep its business and financial risk profile intact. Stable outlook denotes comfort on business risk and financial risk profile of the bank.

In 2012, PTCL acquired 100% shareholding of Rozgar Microfinance Bank Ltd, which was established in 2003, as a districtwide microfinance bank. Henceforth, its name was changed to U Microfinance Bank Limited. PTCL itself is coowned by the Government of Pakistan (62%) and Etisalat International Pakistan (LLC) (26%) (Etisalat), a stateowned Telecom Corporation of UAE. Management control of PTCL rests with Etisalat. The Board of Directors of the Bank consists of eight directors, comprising representatives of PTCL, along with two independent directors. Mr. Burak Sevilengul, the Chairman of the Board, has over 24 years of experience. Mr. Kabeer Naqvi, the President and CEO, has over 20 years of professional experience to his name and has been with the bank, since Sep’15.

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA. The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA’s comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security’s market price or suitability for a particular investor.

U Microfinance Bank receives global recognition with three prestigious Asian Banking & Finance Awards, 2022

Islamabad – 29 August, 2022:

U Microfinance Bank (U Bank), Pakistan’s fastest growing microfinance bank, has added another victory to its long list of achievements by bagging three internationally recognized awards by Asian Banking & Finance (ABF) Awards, 2022. For its performance in 2021-2022, U Microfinance Bank has won the Asian Banking & Finance Wholesale Banking Award 2022 for Domestic Initiative of the Year – Pakistan, and the Asian Banking & Finance Retail Banking Award 2022 for Microfinance Bank of the Year – Pakistan (from the Domestic Retail Bank entry) and Islamic Banking Initiative of the Year – Pakistan.

These accolades pay tribute to U Microfinance Bank’s tireless endeavors over the past seven years towards increasing financial inclusion in the country and serving the unbanked population. Establishing itself as the fastest growing microfinance bank in the industry, U Bank has expanded its network this year by an additional 100 branches nationwide, warranting it to be awarded as the Microfinance Bank of the Year, 2022 – Pakistan by ABF. U Bank is also one of the microfinance banks in Pakistan to introduce Islamic banking services providing its clients with tailor-made, Shariah-compliant solutions for their financing needs, for which U Bank has won the award for Islamic Initiative of the Year – Pakistan.

Broadening it avenues, U Bank has successfully issued its first ever Social Impact Bond, to be used to finance loans for renewable energy, private schooling, low cost housing, and Small & Medium Enterprises (SMEs), primarily in rural Pakistan. This innovative social initiative was widely applauded by ABF, for which U Bank has been awarded with the Asian Banking & Finance Wholesale Banking Award 2022 for Domestic Initiative of the Year – Pakistan.

Upon receiving global appreciation, U Microfinance Bank’s President & CEO, Mr. Kabeer Naqvi, expressed his gratitude and stated, “The three prestigious ABF awards rewarded to U Bank bears testament to our efforts over the past year in achieving improved financial inclusion for the masses, and it gives us great honor to have received this recognition. At U Bank, we take pride in being a mission-driven, customer-centric banking institution aimed at providing the best experiences for our wide spectrum of customers. Keeping this in mind, and despite economic instability in the country, we have incorporated six canvases into our core business model – significantly expanding our unique and innovative banking services – categorized as Rural Retail Banking, Urban Retail Banking, Islamic Banking, Digital Banking, Corporate Banking, and Corporate Finance & Investment Banking. These award wins give us renewed enthusiasm to continue to improve, innovate, and deliver out-of-the-box solutions that can help financially empower the underprivileged parts of Pakistan.”

The Asian Banking & Finance Retail Banking and Wholesale Banking Awards celebrate Asia’s banking leaders and highlight deserving banking candidates on their innovative product strategies to create a larger impact. U Microfinance Bank has previously received the ABF Retail Banking Award for Rural/Cooperative Bank of the Year – Pakistan in 2021 and the ABF Corporate & Investment Banking Award for Microfinance Syndication Deal of the Year – Pakistan in 2020.

PTCL & U Microfinance Bank announce successful conversion of U Bank’s Rs. 1,000M debt into equity

Islamabad, July 26, 2022: Pakistan Telecommunication Company Limited (PTCL), country’s largest ICT services provider and U Microfinance Bank Ltd. (U Bank), a wholly owned microfinance subsidiary of PTCL announced successful conversion of U Bank’s subordinated debt into equity, signed by both institutions for an amount of PKR 1,000 million during a ceremony held in Islamabad.

President and Group CEO, PTCL & Ufone, Hatem Bamatraf and President & CEO, U Bank, Kabeer Naqvi, signed the document that was witnessed by senior members of management from both organizations. This conversion will enable the bank to further capitalize on the growth opportunities possible in Pakistan’s financial sector, spread across a heterogenous spectrum of rural, corporate finance & treasury, urban, corporate, sharia, and digital banking services, thus catapulting bank’s transformation into a challenger retail bank.

Speaking at the ceremony, Hatem Bamatraf, President and Group CEO, PTCL & Ufone, said, “Seeing the potential in U Bank’s ability to further expand and grow, PTCL endeavors to contribute and support the bank in capturing new segments and customer classes to include more of Pakistan into the banking net and further its ambition of financial and social inclusion. This is not only in line with PTCL’s commitment to support the country and its economy but also to strengthen ties between banking and telecom sector.”

Speaking at the occasion, Kabeer Naqvi, President & CEO, U Bank said, “U Bank, thus far, has been successfully enabling underserved Pakistanis and has been positively contributing towards their economic empowerment. Bank has now embarked upon the exciting journey of penetrating into newer market segments, through its six specialized business canvases, to widen its existing customer base and create more impact. This conversion is a testament of our sponsor’s confidence in our ability to deliver positive results. It also reiterates PTCL’s commitment towards contributing to the socio-economic uplift & enablement of Pakistan”. Together, both PTCL & U Bank are at the forefront to provide best-in-class connectivity and financial services to their customers across Pakistan, especially the under-served community.

U Microfinance Bank and PQFTL sign BancaTakaful Agreement

Karachi – December 06, 2022:

Pak-Qatar Family Takaful Limited and U Microfinance Bank (U Bank), Pakistan’s fastest-growing microfinance bank, have strategically signed a landmark BancaTakaful agreement. Under this collaboration, family Takaful products will be offered through U Bank’s distribution network, which is amongst the largest microfinance banking branch network in Pakistan.

The Memorandum of Understanding (MoU) of this partnership was signed by Ms. Mariam Pervaiz, Chief Commercial Officer & Chief of Staff – U Microfinance Bank and Mr. Azeem I. Pirani – CEO, Pak-Qatar Family Takaful Limited, while the signing ceremony was presided over by Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank, in the presence of senior management officials from both the collaborating organizations.

At the occasion, Mr. Azeem Pirani said, “We are pleased to partner with one of the leading microfinance banks in Pakistan having one of the largest distribution networks. We are confident that this partnership will help us to take forward our long-term vision of providing financial protection through Takaful to everyone and it is always encouraging to work with like-minded partners link U Bank who share the same goals and approach towards offering need based, and appropriately priced, financial solutions to the citizens of Pakistan.”

Mr. Kabeer Naqvi, President & CEO – U Microfinance Bank, stated, “We are glad that the fruit of U Bank’s financial inclusion and expansion efforts, along with our partnership with Pak Qatar Family Takaful Ltd. can be translated into enhanced accessibility of Islamic insurance services to the banking customers through U Bank’s network. This mutually beneficial collaboration is key for building harmonized industry relations and gives us an exciting opportunity to introduce Takaful services at U Bank.” The partnership agreement is aimed at offering tailor-made Bancatakaful products to customers and is an important milestone for both the companies within the local financial services ecosystem. The partnership will pave way for world-class Takaful products, which will be introduced in a phased roll-out across U Bank’s extensive network of over 245 branches nationwide currently.

U Microfinance Bank Enters into Strategic Partnership with National Bank of Pakistan for Promotion of Financial Inclusion in the Country

Karachi: Thursday, March 10th, 2022

President & CEO U Microfinance Bank Limited (U Bank) Mr. Kabeer Naqvi and President & CEO National Bank of Pakistan (NBP) Mr. Arif Usmani signed Memorandum of Understanding (MOU) of strategic partnership between two organizations to promote financial inclusion in the country.

This collaboration between the institutions will create synergies between the two institutions. This strategic partnership creates a platform for strengthening the capability of both organizations to provide a comprehensive range of banking services and promote various forms of cooperation including medium to long term Debt Finance, Housing Finance (Low Cost Housing under KPP), Working Capital Funding, Structured Finance and various other funding options.

Speaking at the occasion, Mr. Kabeer Naqvi, President & CEO of U Bank said both institutions have developed a strong mutually beneficial relationship and are willing to extend the cooperation by entering into various innovative transactions including Structured Finance with NBP acting as a Lead arranger and advisor backed by a credit guarantee facility and exchange of Gold Shroff details for better financial worthiness assessment. This alliance will provide an exciting opportunity to bring state of the art financial solutions to our combined customer bases. The synergy will pave way towards promoting financial inclusion in the country.

President & CEO of NBP, Mr. Arif Usmani appreciated U Bank’s efforts towards digitization and financial inclusion of unbanked economy. He further emphasized that inclusion of U Bank in Karyana Store product, recently launched by Prime Minister, will not only provide outstanding results but also help in better reach of product due to U Bank’s grass root experience. He expressed the desire to further strengthen the engagement between two institutions going forward. He also discussed the need of developing industry vide lending controls to minimize non-performing loans and investing on human resources to deliver quality services and financial solutions to the masses. The ceremony was held at NBP’s Head Office and was witnessed by the senior management of both institutions including Mr. Rehmat Ali Hasnie – Group Chief Corporate Investment Banking Group, Mr. Ahmer Liaquat – Divisional Head Microfinance & Special Initiative, Mr. Muhammad Ahmed Qadar – Wing Head Microfinance Institutions and Ms. Mariam Pervaiz – Chief Commercial Officer & Chief of Staff, Ms. Ambreen Malik – Chief Business Officer & Chief Digital Officer, Mr. Farooq Kamran – Chief Corporate & Investment Banking and Mr. Mohsin Raza Aslam – Head Budgeting Planning & Corporate Finance of U Bank.

U Microfinance Bank Enters into Strategic Partnership with Allied Bank Limited and ABL Asset Management Company Limited

President & CEO U Microfinance Bank Limited (U Bank) Mr. Kabeer Naqvi, President & CEO Allied Bank Limited (ABL) Mr. Aizid Razzaq Gill and CEO ABL Asset Management Company Limited (ABL AMC) Mr. Alee Khalid Ghaznavi, signed Memorandum of Understandings (MOUs) of strategic partnership to promote financial inclusion in the country.

This collaboration between the institutions will open avenues to support financial and social inclusion of the unbanked population. The areas of interest between U Bank, ABL & ABL AMC include medium to long term Debt Finance, Structured Finance, Housing Finance, Islamic Finance, Mutual Funds and various other funding options.

Speaking at the occasion, Mr. Kabeer Naqvi, President & CEO of U Bank stated that this strategic partnership with ABL group will strengthen our ability to provide a broad range of banking services to the underserved segment of the society. Furthermore, this will allow us to create efficient synergies with both entities to design and introduce innovative financing solutions.

President & CEO of ABL Mr. Aizid Razzaq Gill appreciated U Bank’s relationship with ABL and expressed the desire to further strengthen their engagement going forward. He also discussed the need of developing industry vide lending controls to minimize non-performing loans, and investing on human resources to deliver quality services and financial solutions to the masses.

Mr. Alee Khalid Ghaznavi Chief Executive Officer ABL Asset Management, said at the occasion that we are excited for this strategic alliance with U Bank which brings us closer to our vision of providing innovative solutions to help investors reach their investment goals and create lasting impact at large. The ceremony was held at ABL’s Head Office and was witnessed by the senior management of both institutions including Mr. Mujahid Ali, Group Chief – Information Technology Group, Mr. Sohail Aziz, Group Chief – Digital Banking Group, Mr. Moin Khalid, Group Chief – Risk Management Group from ABL; Mr. Syed Khalid Husain – Country Head Business Development, Mr. Saqib Mateen – CFO and Mr. Muhammad Asif – Head HR from ABL AMC and Ms. Mariam Pervaiz – Chief Commercial Officer & Chief of Staff, Mr. Muhammad Farooq Kamran – Head of Corporate Banking & Investments, Mr. Mohsin Aslam – Head Budgeting Planning & Corporate Finance and Ms. Madiha Latif – Assistant Manager Corporate Finance of U Bank.

UBL partners with U Microfinance Bank Limited to promote financial inclusion in Pakistan

United Bank Limited (UBL) and U Microfinance Bank Limited (U Bank) recently signed a Memorandum of Understanding to promote financial inclusion in Pakistan and to open up multiple avenues for collaboration, including Medium to Long Term Debt Funding, Retail TFC, Islamic Microfinance Funding, Commercial Paper and synergizing their respective business to scale. The ceremony was held in UBL Head Office in Karachi.

The signing ceremony was presided by Mr. Shazad G Dada, President & CEO UBL and Mr. Kabeer Naqvi, President & CEO U Microfinance Bank Limited along with senior executives of both banks including Mr. Farooq A Khan, Group Head CIBG & FI, Mr. Muhammad Tayyab Khurshid, Unit Head FI and other executives from UBL and Ms. Mariam Pervaiz, Chief Commercial Officer & Chief of Staff, Mr. Muhammad Farooq Kamran, Head of CB&I and Mr. Mohsin Aslam, Head Budgeting Planning and Corporate Finance from U Microfinance Bank Limited.

Mr. Shazad G Dada, President & CEO UBL, at the event, said “As the ‘Best Digital Bank’ of Pakistan, we are looking forward to our strategic alliance with U Bank, with the aim of expanding the scope of financial inclusion across the country. It presents an exciting opportunity to further strengthen our digital prowess to bring state of the art financial solutions to our combined customer bases.”

Mr. Kabeer Naqvi, President & CEO U Bank said “We are delighted to establish this partnership, which is aimed at exploring avenues to collaborate, design innovative products and work together in moving the banking sector forward. This alliance will help us serve more customers and bring more Pakistanis in to the banking net.”

U Microfinance Bank Limited signs an agreement with Trellis Housing Finance Limited

U Microfinance Bank and Trellis Housing Finance Limited have collaborated to extend low cost housing facilities to the low income segment of Pakistani society. Under this arrangement U bank will be utilizing GharHo, Trellis’ proprietary and fully-digital mortgage origination platform, that will provide a digital and simplified application process to the customer for accelerated housing finance deployment & allow more families to have a home for themselves. Trellis will offer its platform services to U bank for both the Mera Pakistan Mera Ghar (The Government’s markup subsidy scheme (GMSS)) as well for U Bank’s own home financing product to qualified customers.

Speaking at the occasion Mr. Kabeer Naqvi, President & CEO of U Microfinance Bank said,” we are delighted to establish this partnership with Trellis Housing Finance Ltd, which is aimed at providing housing to underserved population of the country by working together to simplify the journey of home financing. Housing is a basic human right and we at U Bank aim to contribute in increasing home ownership. We are also mindful that better and safer housing has a direct impact on the growth and well being of families.”

Nadeem Hussain, Chairman of Trellis remarked that to be able to maximize the positive impact on society and in order to close the gap between the supply and demand for housing, its important for all institutions to collaborate and work together to ensure people can get access to financing and subsequently housing. It is a pleasure to partner with U Bank to help deliver on the housing agenda and streamline the customer experience and the process involved.

Mandate Signing between U Microfinance Bank and JS Bank for ADT-1 Capital TFC

President & CEO of U Microfinance Bank Limited (“U Bank”) Mr. Kabeer Naqvi and President & CEO of JS Bank Limited (“JSBL”) Mr. Basir Shamsie, signed the Mandate for raising Additional Tier-1 Capital.

This handshake will not only strengthen the relationship between two banks, but will also open up multiple avenues for collaboration, including medium to long term debt funding, credit structuring and synergizing their respective businesses to scale.

Speaking on the occasion Mr. Kabeer Naqvi, President & CEO of U Microfinance Bank said that we are delighted to collaborate with JSBL in raising debt instrument in the form of Additional Tier-1 Capital TFC in the Capital market. U Bank aims to establish strong partnership with JSBL, which is intended at exploring avenues to collaborate, design innovative products and work together in moving the banking sector forward. This alliance will help us serve new customers and bring more Pakistanis in to the banking net.

Mr. Basir Shamsie, President & CEO of JSBL praised U Microfinance Bank as an emerging player and recognizable brand and commented that JSBL is committed towards building strategic alliances with key market players. This partnership is in line with its vision and mission to seek new ways to enable its customers to shape their lives and businesses. The ceremony was held in the office of JSBL and was witnessed by the senior management of both Banks including Mr. Ahmed Ateeq – Group Head Investment Banking and Structured Finance, Mohammad Salahuddin – Unit Head Investment Banking from JS Bank and Ms. Mariam Pervaiz – Chief Commercial Officer & Chief of Staff, Mr. Farooq Kamran – Head of Corporate Banking & Investments and Mr. Mohsin Aslam – Head Budgeting Planning & Corporate Finance from U Bank.

U Microfinance Bank collaborates with NdcTech and Temenos to accelerate digitalization and promote financial inclusion

U Microfinance Bank Ltd. (U Bank), a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL) and the fastest growing Microfinance Bank in Pakistan has recently signed an agreement with NdcTech to implement Temenos Infinity Digital Banking Platform and Temenos Transact next-generation Core Banking Platform.

U Bank’s mission is to include more Pakistanis into the financial net through constant product development & innovation in microfinance sector with the aim of socioeconomic development and uplifting the national standard of living. The bank has a network of more than 200 branches, 45,000 agent locations across 183 cities and rural areas in Pakistan and offers a wide range of microfinance, SME, housing loans, deposits, payment services, and wallet solutions.

This transformation will enable the bank to provide a superior customer experience; rapidly launch flexible and unique products as well as shorten processing times for transactions. For U Bank, offering personalization through this platform is going to be key to compete and provide more inclusivity and access to its customers.
With Temenos’ open banking platform and NdcTech’s deep implementation expertise, U Bank will be able to optimize its operations and enable the delivery of enhanced digital products with shorter timescales. The partnership will allow U Bank to offer more accessible and lower cost financial services to the Pakistani population and promote financial inclusion.

On this occasion,Mr. Kabeer Naqvi, President & CEO of U Microfinance Bank said: “In order for us to continue to bring more people into financial net, we must continue to innovate and develop products to fulfill the varying needs of our customers. With Temenos banking platform and NdcTech as our technology partner we feel that we are equipping ourselves to create the financial and social impact at a rapid and competitive pace.”

Jean-Paul Mergeai, President International Sales, Temenos, said: “We are proud that U Bank has chosen Temenos to accelerate its digital transformation. We are moving to an increasingly cashless society and Temenos’ open banking platform will enable U Bank to deliver the modern digital banking experiences customers want, faster and at lower cost.”

Ammara Masood, CEO & President of NdcTech said: “We are delighted to be partnering with U Bank, an innovative and forward-thinking organization that has already made such a significant positive impact in Pakistan. We look forward to working together to enable rapid growth for U Bank and make a real difference in the way banking services are delivered in Pakistan.”

U Microfinance Bank Limited and Kashf Foundation Join Hands for Digitization of Loan Repayments and Disbursements

U Microfinance Bank Limited and Kashf Foundation signed an agreement to digitize the loan repayments and disbursement. Through this collaboration, U Microfinance Bank will extend its channel services to Kashf Foundation for providing easy and secure loan collection and disbursements services through UPaisa Mobile wallets to its customers.

Speaking at the occasion Mr. Kabeer Naqvi – President & CEO of U Microfinance Bank said that “We strongly believe that collaboration between traditional microfinance and digitization is necessary to build a forward looking financial sector geared towards serving a larger segment of financially excluded society. These collaborations will become starting point for access to credit, saving, health insurance and much more. We are excited about our partnership with a microfinance pioneer like Kashf Foundation which will unlock potential for both partners by streamlining services and bring efficiency and ease to the lives of the customers”.

Ms. Roshaneh Zafar, MD and CEO – Kashf Foundation said that “Increasing access to digital financial services is a powerful tool to enhance women’s economic opportunities to drive sustainable growth in the country. In this endeavor, Kashf Foundation is pleased to partner with U Microfinance Bank Limited to provide access to innovative digital solutions to socially and economically empower women micro-entrepreneurs across Pakistan. There is no doubt that promoting women empowerment leads to healthier families, prosperous communities and a thriving economy.”

This joint step will further enhance U Bank’s and Kashf Foundation’s work for financial inclusion in Pakistan.

U Microfinance Bank and Bank Alfalah Announce a Strategic Partnership

President & CEO of U Microfinance Bank Limited Mr. Kabeer Naqvi and President & CEO of Bank Alfalah Limited, Mr. Atif Bajwa, signed off a strategic partnership to promote financial inclusion in the country.

This new relationship not only strengthens the bond between both banks, but also promises to open up multiple avenues for collaboration, including medium to long term debt funding, credit structuring and synergizing their respective businesses to scale.

Speaking on the occasion Mr. Kabeer Naqvi, President & CEO of U Microfinance Bank said that we are delighted to establish this partnership with Bank Alfalah, which is aimed at exploring avenues to collaborate, design innovative products and work together in moving the banking sector forward. This alliance will help us serve more customers and bring more Pakistanis into the banking net.

Mr. Atif Bajwa, President & CEO of Bank Alfalah praised U Microfinance Bank as an emerging player and recognizable brand and commented that Bank Alfalah is always committed towards building strategic alliances with key market players. This partnership is in line with its vision and mission to seek new ways to enable its customers to shape their lives and businesses.

The ceremony was held in the head office of Bank Alfalah and was witnessed by the senior management of both institutions including Mr. Saad ur Rahman Khan – Group Head – Corporate, Investment Banking, Financial Institutions and International Business – Bank Alfalah and Ms. Mariam Pervaiz – Chief Commercial Officer & Chief of Staff – U Microfinance Bank.

U Microfinance Bank Limited: Successful closure of Additional Tier-1 Capital Instrument Term Finance Certificates (TFC) – PKR 1,000,000,000

U Microfinance Bank Limited is pleased to announce the successful closure of its Fully Paid up, Rated, Privately Placed / DSLR Listed, Unsecured, Subordinated, Perpetual and Non-Cumulative Debt Instrument Additional Tier 1 Capital TFCs of PKR 1,000,000,000. These TFCs will contribute towards U Bank’s Tier-1 capital for Capital Adequacy Ratio (“CAR”) purposes and for the Bank’s on-going business operations to maintain its growth momentum while complying with the requirements of SBP.

In an Industry first, U Bank has successfully acted as the sole arranger of this instrument. This is a momentous milestone for the Microfinance industry, as for the very first time, a Microfinance Bank has acted as a sole arranger of any instrument issued in the history of Pakistan.

Speaking on this fine achievement, President and CEO of U Bank – Mr. Kabeer Naqvi said “U Bank has always strived to scale to new heights not only for itself but also as a service to the microfinance industry. This achievement is a result of sheer hard work, dedication and commitment from team U Bank and is a testament of the potential this sector is capable of achieving. U Bank will continue to innovate and strive to achieve greater progress in order to serve its last mile customer base, thereby achieving its mission of banking the unbanked customer of this country”. He also expressed gratitude to investors and partners who have been very supportive throughout this journey and who helped U Bank in achieving this milestone. He also appreciated the role of the central bank for acknowledging U Bank’s unique role as an innovative financial institution.

U Microfinance Bank Ltd. (U Bank) wins ‘Fastest Growing Microfinance Bank in Pakistan’ at Global Business Outlook Awards, 2021

During the Global Business Outlook Awards in May, 2021 U Microfinance Bank Ltd. (U Bank) was awarded Fastest Growing Microfinance Bank Pakistan. The Global Business Outlook Awards seek to recognise and reward excellence in businesses around the world. They are designed to facilitate the outstanding work of businesses and business leaders across industries, in terms of performance, innovation and drive to create industry value.

Establishing itself as a pioneer within the industry;

U Bank is the largest microfinance bank in terms of our network of 201 branches and 200 ATMs across 183 rural areas and cities in the country, providing a wide range of microfinance loans, digital & branchless banking solutions and deposit products. Moreover, U Bank in collaboration with Ufone under the name of U Paisa offers branchless banking services in over 45,000 designated agent locations all across Pakistan. This channel offers ease and convenience to customers in utilizing banking services.

U Bank’s victory as the Fastest Growing Microfinance Bank Pakistan 2021 is a testament to the bank’s tireless efforts to create a more inclusive society, serve the unbanked population of Pakistan.

While receiving the award, Mr. Kabeer Naqvi (President & CEO) said “U Microfinance Bank has been taking every possible measure to enable the masses to earn better living standards and enjoy a higher quality of life by providing financial services in the easiest and most convenient way. We continue to be one of the fastest growing institutions in the microfinance sector and keep innovation and customer needs at the heart of our efforts, to become the problem solver and enabler to the Pakistani microfinance ecosystem.”

About Global Business Outlook Awards, 2021:

Global Business Outlook Awards seeks to recognise and reward excellence in businesses around the world. It is designed to facilitate the outstanding work of businesses and business leaders across industries. Global Business Outlook Awards extends to the private and public sector—again, marking a testament to the work of a myriad businesses in terms of performance, innovation and drive to create industry value. What is interesting about Global Business Outlook Awards is its expansive focus on businesses of all sizes, in both broad and niche sectors. Essentially, this could create competitive advantage for smaller market participants as well as larger firms adopting international models and techniques into their business strategies to create exceptional value. www.globalbusinessoutlook.com/awards

U Microfinance Bank & CDA join hands to plant the largest Miyawaki Forest in Islamabad

U Microfinance Bank in collaboration with the Capital Development Authority (CDA) led a tree plantation drive on 6th August, 2021 in I-8 Kachnar Park Islamabad. The plantation took place on approximately 1.5 acres of land and consisted of 6000 trees making it the largest Miyawaki Forest in Islamabad.

The U Bank team strives to be a triple bottom line company, with “People, Plant and Profit” being at the center of all our efforts. This marks the third year that U Bank has played its part in conserving and protecting our environment. The initiative is part of U Bank’s larger vision as a company to work towards reducing its carbon and waste footprint as well as introducing a suite of products that encourage climate resilience.

Named after the famous Japanese botanist Akira Miyawaki, the Miyawaki method is a forest regeneration technique that aims to recreate self-sustaining, multilayered indigenous forests on degraded land with little to no human intervention. Addressing the gathering U Bank’s President & CEO, Mr. Kabeer Naqvi said “Tree plantation is not just a feel good exercise rather it is a necessity, the urgent need of the hour. Planting of trees is especially important to protect our environment against air pollution and global warming. I am happy to see the high enthusiasm of our volunteers who have been actively involved in organizing our tree plantation campaigns. We hope to keep this tradition and effort alive in the future.”

U Microfinance Bank wins Asian Banking & Finance (ABF) Retail Banking Award 2021 for Rural/Cooperative Bank of the Year – Pakistan

U Microfinance Bank Limited wins the ABF Retail Banking Award 2021 for “Rural/Cooperative Bank of the Year – Pakistan”. With a gross absence of banking facilities in rural areas, winning the Rural Bank of the Year award recognizes U Bank’s efforts in ensuring the availability of modern banking to our core customer group.

U Microfinance Bank devotes itself to battling this disproportionate lack of financial inclusion in rural areas by serving the economically active poor, i.e. farmers, small entrepreneurs, and daily wagers. The needs of this customer segment are vastly different from the affluent customer segment residing in cities. Amidst the ongoing global COVID-19 pandemic, U Bank takes immense pride in the fact that, against all odds, we took a determined stand to continue lending to our customers to keep them afloat. Further, lending emergency loans against gold has helped communities monetize the dead assets. To further protect our customers, U Bank also issued micro-insurance to our rural customers which is the need of the hour.

On receiving this award, U Bank CEO and President, Mr. Kabeer Naqvi, said, “This acknowledgment encourages us to do more in times to come and move forward with new initiatives such as low cost housing, and contributing to the economy with international remittances and Islamic banking.” Sharing his thoughts about the future engagements, Mr. Naqvi added, “Pakistan is one of the most vulnerable countries during the pandemic, and the greater vision of the bank is to work on water conservation, green energy and climate change.”

Apart from considering the needs of rural communities, i.e. customers and employees and despite the pressures of the pandemic, the bank has continued to set performance benchmarks in the sector.
About ABF Retail Banking Awards 2021

The Asian Banking & Finance Retail Banking Awards are held yearly and seek to honor outstanding banks that have introduced groundbreaking retail banking products and services that proved to be industry game-changers.

U Microfinance Bank Signs Memorandum of Understanding with Pakistan Mortgage Refinance Company Limited for Affordable Housing Finance

President & CEO of U Microfinance Bank Limited (U Bank) Mr. Kabeer Naqvi and Managing Director & CEO of Pakistan Mortgage Refinance Company Limited (PMRC), Mr. Mudassir H. Khan, signed Memorandum of Understanding (“MOU”) to support & promote affordable housing finance in the country.

Under this agreement PMRC will provide U Bank with long-term funding at discounted rates to promote housing finance. This new relationship will not only strengthen the bond between both the institutions, but will also open up multiple avenues for collaboration, including Low Cost Housing Finance, Credit Guarantee Scheme and Capacity Building (including training, product design, assistance in market research etc.)

Speaking on the occasion Mr. Kabeer Naqvi, President & CEO of U Bank said that these initiatives will help the bank in providing affordable mortgage facilities to the low-income individuals particularly those in the informal sector. The government of Pakistan is committed to providing affordable housing finance to its citizens for economic and social development. This alliance will also help in social uplift and poverty alleviation.

Speaking at the occasion, Mudassir H. Khan, MD & CEO of PMRC said, this MOU will pave way for the microfinance industry to extend housing finance to the low-income groups, a market segment which has remained neglected since long. PMRC is continuing to play its role of being a catalyst in mortgage market development and for the growth of affordable housing in the country.

The ceremony was held in the office of PMRC and was witnessed by the senior management of both institutions including Mr. Muhammad Shahzad Khan – Head of Business, Mr. Farrukh Zaheer – Head of Treasury & FIs, Mr. Jamil Akhtar – Head of Products and Mr. Shaikh Taha Ahmad – Senior Business Manager from PMRC and Ms. Mariam Pervaiz – Chief Commercial Officer & Chief of Staff, Mr. Muhammad Farooq Kamran – Head of Corporate Banking & Investments and Mr. Mohsin Aslam – Head Budgeting Planning & Corporate Finance from U Bank.

U Microfinance Bank Ltd. and It’s President & CEO wins Global Good Governance Awards, 2021

During the Global Good Governance – 3G Awards held on May 25, 2021 U Microfinance Bank Ltd. was awarded The 3G Creativity and Innovation Award and U Bank President & CEO Mr. Kabeer Naqvi won The 3G Best Emerging Leader in Corporate Sector Award. The Global Good Governance Awards are held annually to celebrate and acknowledge individuals, institutions and organizations around the world for their impact driven work carried out with social responsibility and good governance.

Establishing itself as a pioneer within the industry; U Bank is the largest microfinance bank in terms of our network of 201 branches and 200 ATMs across 183 rural areas and cities in the country, providing a wide range of microfinance loans, digital & branchless banking solutions and deposit products. Moreover, U Bank in collaboration with Ufone under the name of U Paisa offers branchless banking services in over 45,000 designated agent locations all across Pakistan. This channel offers ease and convenience to customers in utilizing banking services.

The 3G Creativity and Innovation Award 2021 is a testament to U Bank’s efforts to invest in technology, as well as championing innovation and creativity in its operations and processes.

The 3G Best Emerging Leader in Corporate Sector Award honors U Bank’s President & CEO Mr. Kabeer Naqvi for spearheading initiatives to socially and financially include underprivileged communities across Pakistan.

While virtually receiving the award, Mr. Kabeer Naqvi (President & CEO) said “U Microfinance Bank has been successfully enabling underserved Pakistanis and has been positively contributing towards poverty alleviation and economic empowerment. We have cemented our place in the microfinance ecosystem covering the greatest distance in the smallest amount of time and these awards are a testament to our team’s dedication towards the mission of financial inclusion. U Bank will continue its process of self-reflection and relearning to improve our products and services for greater meaningful impact in the lives of those we serve.”

About Global Good Governance – 3G Awards: Cambridge IFA is leading a global initiative to promote best practices in governance and sustainability. The Global Good Governance Awards or 3G Awards celebrate individuals, governments, public and private institutions and NGOs that demonstrate making governance and sustainability a strategic priority of their organizations. The 3G Awards are a premier awards programme that highlight excellence in good governance and commitment to social welfare in 3 major streams: Government & Politics, Corporate Sector, and Social Sector & Philanthropy. www.cambridge-ifa.net | www.3g-summit.com

U Microfinance Bank and NADRA Technologies Limited shake hands to provide e-Sahulat services

U Microfinance Bank and NADRA Technologies Limited has collaborated to extend e-sahulat services at U Microfinance Bank branches. Through this partnership U Bank’s 200+ Branch network will be able to offer complete e-sahulat services that includes Bill payment, G2P payments, Money Transfer, Donation Collection, Fee Collection and Citizen Verification etc.

On this occasion Mr. Kabeer Naqvi – President & CEO of U Microfinance Bank and Mr. Ali Javed – Director General, Public Service Directorate, NADRA Technologies Limited exchanged their views on the impact of this service.

Mr. Naqvi said that “We are delighted to shake hands with NADRA and provide facilitation to our customers. Our aim is to take this collaboration a step further and enable UPaisa services al all 15,000 plus NADRA e-Sahulat centers nationwide in the next phase. This partnership with NADRA e-sahulat will further expand our services and connect more recipients in urban and rural areas of Pakistan.”

Mr. Ali Javed said that “NADRA e-Sahulat is rapidly expanding its franchise network and extending services outreach of e-Sahulat platform to the general public across Pakistan and am delighted at the partnership with Microfinance Bank. I believe that both organizations can explore further possibilities in digital financial payments together fostering the shared vision of Public Service delivery.”

This joint step from both the entities will help further accelerate financial inclusion and growth in Pakistan.

U Microfinance Bank Limited Awarded ABF Corporate & Investment Banking Awards 2020 for “Microfinance Syndication Deal of the Year – Pakistan”

This year, U Microfinance Bank Ltd. (U Bank) was awarded the ABF Corporate & Investment Banking Award 2020for“Microfinance Syndication Deal of the Year – Pakistan” category. The Syndicate Term loan was executed between U Microfinance Bank Ltd. and Allied Bank Limited in last week of December 2018, with drawdown in trenches, with the purpose of fueling business expansion and growth in loan portfolio.

This landmark transaction is the first and largest of its kind in the microfinance space of Pakistan in terms of the amount secured from multiple partner banks in the form of a syndicate. No other player in the microfinance industry of Pakistan has achieved the distinction of having a syndicate facility worth US$ 259Mn in a single transaction in the last 20 years. The facility participants comprise of six leading commercial banks including the National Bank of Pakistan, The Bank of Punjab, Allied Bank Limited, Bank Alfalah Limited, MCB Bank Limited and Askari Bank Limited.

The Syndicate transaction was timely and successfully finalized on considerably low-cost funding as compared to Pakistan’s industry and market norm. This collaboration was testament of the banking channel relationship that U Bank has developed in the past years and demonstrates its brand value as an industry leader.
The Syndicated Term loan has contributed significantly towards the growth of the organization and its loan portfolio. Over the years, U Bank has evolved into a strong microfinance service provider and is striving towards leading the industry in the coming years.

U Bank has grown from 75 branches in 2017, to 201 branches by December 2019, of which 60 branches were added in 2019 alone. By securing competitive pricing on this transaction, the Bank managed to pass on maximum benefit to its customer, by offering lower interest rates on loans. In the past three years only, U Bank also secured a significant customer base, and our active borrowers increased from 187,000 to more than 314,000.
U Microfinance Bank Limited is in constant pursuit to enable unbanked population of the country. On the occasion, Mr. Kabeer Naqvi – President & CEO of U Microfinance Bank said ‘Our ambition is to bring banking services to the masses and enable them to earn sustainable livelihood and improve their living standards. Being awarded the Microfinance Syndication Deal of the Year – Pakistan,is recognition of our constant endeavor towards financial inclusion for all ’

Due to the diligent efforts and remarkable banking practices, U Bank has once again taken the front row to lead Pakistan’s microfinance banking industry and has set new benchmarks.

About ABF Corporate & Investment Banking Awards 2020:

The ABF Corporate & Investment Banking Awards are organized by the Asian Banking & Finance magazine. Asian Banking & Finance is the industry magazine serving Asia’s dynamic financial services industry. Each issue carries a balanced mix of articles which appeal to the C-level executives of large banking and financial services institutions in Asia.

Asian Banking and Finance is printed quarterly and is circulated to senior management in Asia’s financial services firms through direct mail delivery and by bulk copies to headquarters.

U Microfinance Bank Wins Grant from Karandaaz for Financial Inclusion of Women

March 5, 2020, Islamabad:

U Microfinance Bank Ltd. signed a grant agreement with Karandaaz Pakistan, with funding from Bill & Melinda Gates Foundation. The grant will help U Bank further its mission of financially including more women. U Bank won the grant through a competitive application process via Karandaaz’s Digital Experiments program.

While uptake for digital financial services (DFS) remains low in Pakistan, the gap is especially wide when it comes to women. Only 7% of women in Pakistan are financially included, compared to 20% of men. Research shows that women are engaged in financial activity informally, especially when it comes to saving. While mobile money is becoming an increasingly popular mode of money storage internationally, in Pakistan adoption of mobile accounts continues to lag behind. Through this grant, U Bank seeks to test out interventions specially designed to encourage more women to become active users of digital accounts. The lessons learned through the experiment will be widely disseminated for the diffusion and uptake of best practices to push the entire ecosystem forward.

“U Bank looks forward to working with Karandaaz Pakistan over the next few months to generate new insights on the interventions that accelerate women’s usage of mobile wallet accounts”, shared Kabeer Naqvi, U Bank’s President, and CEO. “The digital future of the bank is already shaping up with the introduction of internet and mobile banking, deployment of ATMs and a fully digital loan application process. This research will help us further learn the most effective ways to extend our reach and reduce the gender gap within the digital financial services space”.

Ali Sarfraz, CEO Karandaaz Pakistan said, “Karandaaz is delighted to engage in this partnership with U Microfinance Bank Ltd. The focus of this support is to encourage digital financial service providers to use innovative approaches for promotion of inclusivity in general and women’s financial inclusion in particular using A/B testing. We hope that these experiments will help in identifying the drivers that can promote mobile account usage by women who otherwise find it hard to access traditional banking avenues. The expected outcome is the conversion of in-active users or non-users by trying variations in communication strategy, product features and digital transaction costs. We are excited about our partnerships with different DFS providers for generating insights about digital account usage and look forward to deepen our engagement with them to support such initiatives.”

Karandaaz is onboarding partners on a rolling basis to conduct digital experiments in partnership with DFS providers to address the barriers related to uptake and active usage of digital accounts. Interested parties can apply to Karandaaz for support to conduct experiments for testing ideas, products, services, and incentive structures that can potentially accelerate the uptake of DFS by excluded and underserved segments, especially rural women. AB testing will be conducted through these experiments to extract results. The lessons learned through these experiments will be widely disseminated for the diffusion and uptake of best practices by the DFS practitioners.

About Karandaaz:

Karandaaz Pakistan promotes access to finance for micro, small and medium-sized businesses through a commercially directed investment platform, and financial inclusion for individuals by employing technology-enabled solutions.

Karandaaz is funded by UK’s Department for International Development (DFID) and Bill & Melinda Gates Foundation.

U Microfinance Bank Limited Awarded Global Good Governance award for ‘Best Emerging Microfinance Bank 2020’

U Microfinance Bank Ltd. (U Bank) was awarded the Best Emerging Microfinance Bank 2020 during the Global Good Governance – 3G Awards held on June 8, 2020. The Global Good Governance Awards are held annually to celebrate and acknowledge institutions and organizations around the world for their impact driven work carried out with social responsibility and good governance.

Establishing itself as a pioneer within the industry; U Microfinance Bank features a comprehensive network of 200+ branches spread across 183 cities and rural areas to cater and effectively provide a wide range of microfinance loans, digital & branchless banking solutions and deposit products. U Bank in collaboration with Ufone under the branch name of UPaisa offers branchless banking services in over 45,000 designated agent locations all across Pakistan. This channel offers ease and convenience to customers in utilizing banking services.

The Best Emerging Microfinance Bank 2020 award, signifies the tireless efforts and steps taken by U Microfinance Bank Limited to create a more inclusive society, by providing financial services to the unbanked population of the country by enabling them to earn better livelihoods and enjoy a higher quality of life.

Owing to current uncertain circumstances as a result of the COVID-19 pandemic, the award ceremony was held virtually across the globe to ensure safety and security of all in attendance.

While virtually receiving the award, Mr. Kabeer Naqvi – President & CEO of U Microfinance Bank said “At U Bank we are committed to expand our outreach and keep innovation and customer needs at the heart of our efforts as we strive to serve the unbanked population of the country. We strongly believe that access to microfinance services helps build a more inclusive society.”

About Global Good Governance – 3G Awards:

Cambridge IFA is spearheading a global initiative to promote best practices in governance and sustainability. The Global Good Governance Awards or 3G Awards celebrate individuals, governments, public and private institutions and NGOs that demonstrate making governance and sustainability a strategic priority of their organisations. The 3G Awards are premier awards programme that highlights excellence in good governance and commitment to social welfare in 3 major streams: Government & Politics, Corporate Sector, and Social Sector & Philanthropy.
www.cambridge-ifa.net | www.3g-summit.com

U Microfinance Bank inaugurates its Innovation Centre

Islamabad:

U Microfinance Bank Ltd. officially launched its Innovation Centre at the bank’s head office. As the bank enters the new decade, this space will serve as the base of operations for innovation related partnerships, and product and service design research. The center’s overlying objective is to keep a pulse on upcoming disruptions and technology breakthroughs and design programs, pilots and/or tests to help serve the bank’s triple bottom line of people, planet and profits in more innovative ways. Furthermore, the center will also be responsible for producing regular internal and external research, working papers and articles as it works towards a more financially inclusive Pakistan.

The center will especially be looking at leveraging partnerships within the startup ecosystem to help co-create and scale solutions that help disrupt the financial ecosystem. U Bank’s approach is unique in the sense that it seeks to go beyond just collaborating with FinTech (financial technology) startups, and will also look to partner with social impact driven startups. Considering that a bulk of the bank’s loan portfolio is within the agriculture and livestock sector, the team will be focusing especially on innovations within that space. Other key sectors of interest include renewable energy, environment, livelihood creation and health.

“Innovation is a part of U Bank’s DNA and one of our core values. Being a triple bottom line company focused on people, planet and profits, we are on a continuous mission of self-reflection and relearning to improve our product and services and the lives of those we serve,” said Kabeer Naqvi, CEO & President U Bank. “With our work under this new center we will be doubling our efforts to ensure that we bank the unbanked population of Pakistan and those at the last mile”.

U Microfinance Bank celebrates 200th branch network landmark

U Microfinance Bank inaugurates its 200th Branch situated in Gilgit with the commitment to take banking services to the last mile in Pakistan. The President & CEO of U Microfinance Bank, Mr. Kabeer Naqvi along with the management team inaugurated the branch on 4th of October 2019.

Mr.Naqvi while speaking at the occasion said that “we are committed to expanding our footprint across Pakistan and grow our network to serve the unbanked population of the country. We strongly believe that access to microfinance services helps to build a more inclusive society and our financial services contribute in creating livelihoods for our customers. Our expanding geographical footprint is a testament to our commitment towards economic enablement of the unbanked population of Pakistan”.

Mr. Naqvi thanked U Microfinance bank’s shareholder and the board for their continuous support and trust. He said that State Bank of Pakistan has played an instrumental part in helping us achieve this landmark by extending unparalleled support and guidance. He further added that U Bank is immensely grateful to its customers for their confidence in U Bank’s brand. Lastly, Mr. Naqvi thanked U Bank’s employees for their hardwork and passion, who are at the heart of this organization. U Microfinance bank is a wholly owned subsidiary of PTCL and currently operates in over 160 cities and the rural areas. It offers a wide range of microfinance loans and deposit products. U Bank’s branchless banking arm – U Paisa, provides banking services at approximately 45,000 agent locations across Pakistan. U Microfinance Bank is undergoing a digital transformation and is getting ready to serve its customers through digitizing the loan process, provide 24 hour banking services through its own ATMs and offer internet & mobile banking services.

U Microfinance Bank Limited partners with WorldRemit for instant money transfers to Pakistan

Islamabad and London, 3 September 2019:

Leading digital money transfer service WorldRemit has joined forces with U Microfinance Bank for online money transfers to Pakistan.

Pakistanis living in over 50 countries, including the USA, UK, Canada and Australia, can now send money directly from their smartphones via WorldRemit to 190 plus U Microfinance Bank locations across Pakistan.
Remittances play a critical role in the growth of the Pakistani economy. According to the World Bank, 7.6 million Pakistanis living abroad sent over $20 billion in remittances in 2018, accounting for almost 7% of the country’s GDP. WorldRemit is offering customers zero fees on transfers to Pakistan of $210 or over. These remittances can be collected at all U Bank branches.

Kabeer Naqvi, President & CEO U Microfinance Bank, said: “U Bank is committed to the national cause of bringing more international remittances to Pakistan through a formal channel. We aim to serve customers’ families at their home locations and bring sense of security and convenience to them.”

Hamza Islam, Country Director for Pakistan at WorldRemit, comments: “U Bank is a natural partner for WorldRemit, as we share a common goal to offer accessible, convenient financial services to everyday Pakistanis and foster financial inclusion.

The new partnership with U Bank further expands our network in Pakistan, connecting more recipients in urban and rural areas to our award-winning money transfer service”
WorldRemit currently serves almost 4 million customers, completing 1.3 million transfers every month from over 50 countries to over 150 destinations.

U Microfinance Bank is a subsidiary of Pakistan Telecommunication Company (PTCL) and currently operates at more than 195 locations. It offers a wide range of microfinance loans, deposit products, and branchless banking solutions to across the country with presence in 108 cities and rural areas in Pakistan.
Visit the WorldRemit website for more information on how to send money to Pakistan.

U Microfinance Bank launches its first impact assessment and baseline study and shares new insights about their microfinance customers.

Islamabad:

U Microfinance Bank launched its flagship Impact Measurement & Baseline report today in an event hosted in Islamabad. The guests included executives from various microfinance, research and international institutions who all came together to discuss the challenges and opportunities in measuring social impact within the Pakistani microfinance sector. This first-of-its-kind report in the Pakistani ecosystem, is a concrete step forward by U Bank to gather and open-up more customer side data and insights and ensure better product and service design with the aim of improving the sectors social impact outcomes.

The report comes at an opportune time when the global microfinance industry is grappling with the key question of its ability to deliver on its dual promise of social and economic performance. While recent research has put the core assumption of the sector, that it lifts people out of poverty, under increasing scrutiny with evidence contrary to that belief remains in agreement that it is still a major part of the equation.

The report looks at data across five main categories of impact – household, livelihood, health and nutrition, business and the bank’s product and service quality. The first report, which will be a biennial effort, establishes a baseline of where U Bank’s customers are currently against these metrics and analyzes their perceptions about the impact that the microfinance loans have had on their lives and livelihood. The methodology used is a blended approach – combining elements of experimental and Acumen’s lean data approaches – to put forth a new way of measuring impact from the costly and time and labor intensive RCTs that have been traditionally been favored to assess impact. In line with global research, our data shows that microfinance plays a key role in helping our customers overcome shocks such as illness, death, crop failures and natural disasters. Furthermore, one of the biggest values our customer attribute towards the loan is the resulting gains in quality of life and how it helps smooth household consumption. 75% of the respondents indicated that the loan has led to a positive impact on their business income and a majority of them agreed that the loan was critical for the health and quality of their businesses. The report also digs deeper into the data-set and

MoITT Dr. Khalid Maqbool Siddiqui visits U Microfinance Bank HQ

On Wednesday, 13th November the Federal Minister for IT & Telecommunications Dr. Khalid Maqbool Siddiqui visited U Microfinance Bank Ltd. Head Quarters – ( a wholly owned subsidiary of PTCL – Etisalat) in Islamabad.

Over the last 4 years U Microfinance Bank has made important contributions towards implementation and achievement of the national financial inclusion agenda put forth in the National Financial Inclusion Strategy 2023 that aims to bring 50% of Pakistan’s adult population into the banking net. Over these years the bank has demonstrated exceptional growth and our network outreach has gone from 28 branches to 200 branches with its portfolio having grown from PKR 900 million to PKR 21 billion as of closing figures for the last quarter (ending September 2019). U Bank also boasts of 305,000 active borrowers and 400,000 depositors with a deposit base of PKR 20 billion. In 2018, the bank also recorded impressive profit growth of 111% compared to the previous year. In addition, the banks net equity has gone from PKR 1 billion to currently PKR 2.5 billion tier I and PKR 4 billion tier II.

The Federal Minister for IT lauded the U Bank management team for remarkable turn-around story of the Bank. President & CEO of U Microfinance Bank –Kabeer Naqvi added that we as a microfinance bank are fully committed toward economic enablement of the Pakistani citizens and firmly believe that U Bank can play a significant role in delivering on this national agenda.

U Microfinance Bank contribution towards the achievement of the Sustainable Development Goals & National Financial Inclusion Stategy – NFIS goes beyond simply financial uplifting and increasing income – rather the bank, with its vast range of creative products and the services positively impacts health, education, house-hold emergency management capacity, woman empowerment/gender equality, small industry uplifting, as well as providing environmental protection and renewable energy, among others.

As an organization U Bank also remains primed to become a forerunner in the future of banking by solving the critical challenges faced by customers and providing them with ever improving value-added services. Having established its physical footprint across the nation, the next challenge that the bank is taking on is that of digital transformation to further expand its reach to customers at the last mile who have historically remained neglected by the banking industry. According to a study by Google, by 2030 Pakistan is projected to be the fourth fastest growing digital economy thanks to the significant gains in IT/Telecom infrastructure and connectivity (with further investments being made still), e-commerce, e-governance and service delivery, digital finance education and agriculture (land record digitization, farming advisory services etc.) U Bank, for years 2020 and beyond, aims to achieve operational excellence by investing in and leveraging technology to set industry standards, while benefitting from process automation and innovation. The bank will also continue to use its branchless banking license in catering to the last mile customer. Branchless Banking and digitization will thus remain two key focus areas for the bank. U Bank has embarked upon the journey towards becoming a digital bank that is prepared to deliver value and services via technology, enabling it to potentially become one of the most accessible banks in the country, whilst ensuring that it continues to substantively contribute to the SDGs & NFIS goals.

UBank Raises Rs. 600 Million for Seven Years through TFC

U Microfinance Bank Limited (U Bank) — through its Lead Adviser and Arranger Pak Oman Investment Company — has raised Rs. 600 million in the form of Privately Placed Term Finance Certificates (PPTFC) from Banks, DFIs and Asset Management Companies. The PPTFC issue will contribute towards UBank’s Tier II capital.

The purpose of this issue is to strengthen the bank’s capital base, primarily aiding with the Minimum Capital Requirements and Capital Adequacy Ratio as prescribed by the State Bank of Pakistan. This TFC comes with a term of 7 years and will pay profit semi-annually with the principal redemption after a grace period of 5 years, in four equal semi-annual installments.

This is first time that a Microfinance Bank has raised a Term Finance Certificate for Tier 2 capital. UBank said that its a milestone and ground breaking transaction for Pakistani Microfinance industry. U Microfinance Bank Ltd. (U Bank) is a wholly owned subsidiary of Pakistan Telecommunication Company Limited (PTCL). The bank has a network of 76 touch points, across 70 cities and rural areas in Pakistan and offers a wide range of microfinance loans, deposit products and branchless banking solutions.

U Bank’s branchless banking offers services under the banner of UPaisa in collaboration with Ufone (Pak Telecom Mobile Limited). The service is offered at nearly 45,000 agent locations across Pakistan.

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