Habib Bank Limited (HBL) has approved an equity investment of up to Rs2 billion in its subsidiary, HBL Microfinance Bank Limited (HBL MfB), as part of its strategy to enhance financial inclusion and strengthen its microfinance operations.
HBL disclosed this development through a notice to the Pakistan Stock Exchange (PSX) on Thursday in accordance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 of the Rule Book of the PSX.
“We hereby convey that the Board of Directors of Habib Bank Limited (HBL) has approved an Equity Investment of up to Rs. 2 Billion in its subsidiary HBL Microfinance Bank Limited (HBL MfB) in compliance with all regulatory requirements and the approval of the Shareholders of the Bank,” read the notice HBL sent to the the PSX.
The equity investment has been approved by HBL’s Board of Directors on February 27, 2025, and is subject to regulatory compliance and shareholder approval.
HBL MfB, founded in 2002 as a microfinance bank, was created to address poverty and support social and economic development by offering financial opportunities to thousands of underprivileged households.
The Rs2 billion capital injection is expected to bolster its lending capacity, improve operational efficiencies, and facilitate greater outreach in rural and urban markets.
On February 14, HBL Microfinance Bank signed a risk-sharing agreement with the World Bank’s member International Finance Corporation (IFC) to enhance financial accessibility in Pakistan.
The agreement, backed by the Private Sector Window of the Global Agriculture and Food Security Program (GAFSP), will enable HBL MfB to share 50% of the risk on its microfinance loan portfolio of up to $80 million with IFC. The initiative aims to improve access to credit for smallholder farmers and microenterprises, particularly women entrepreneurs.
