Pakistan Telecommunication Company Limited (PTCL) said it signed an agreement to provide a PKR 4 billion loan to its subsidiary U Microfinance Bank. The capital injection will enable the bank to further capitalize on the growth opportunities in Pakistan’s microfinance sector, the company said.
The unsecured Tier 2 debt facility will enable U Bank to expand its customer reach in the under-served population. U Microfinance Bank plans to use the funds in its business operations and expansion plans. The loan will also contribute to U Bank’s Supplementary/Tier 2 Capital for Capital Adequacy Ratio (CAR) as per the guidelines set out by the central bank.
U Microfinance Bank serves more than 850,000 customers, of which over a fifth are women. At the end of 2018, U Bank’s deposit portfolio was worth PKR 19 billion, up from PKR 12 billion a year earlier. The loan portfolio grew from PKR 10.6 billion to PKR 17.0 billion in 2018, and the number of employees increased from to 1,321 to 1,980.
Source: https://www.telecompaper.com/news/ptcl-injects-pkr-4-bln-in-u-microfinance-bank--1275432