PTCL loan to U Microfinance Bank is injected after the agreement between both organizations.
Agreement about Rs 4 billion PTCL loan to U Microfinance Bank has signed. The Unsecured Subordinated Debt Facility (Tier 2 capital) to U Microfinance Bank (U Bank) will be provided. However, U Bank is the subsidiary of PTCL or Pakistan Telecommunication Company Limited.
According to sources, loan will enable U Bank to avail the expansion opportunities present in the microfinance sector of Pakistan. In the always showing signs of change focused scene, this Tier 2 capital will empower U Bank to extend its present client go after serving the under-served populace. U Microfinance Bank intends to use these assets in its business activities and development designs. Serving its clients through problematic development and digitization, the bank will concentrate on accomplishing its development targets.
As of now, U Microfinance Bank serves in excess of 850,000 clients, where 22% of them are female. At the end of 2018, U Bank’s deposit portfolio increased from PKR 11.97 billion to PKR 19 billion, while the advance portfolio raised from PKR 10.6 billion to PKR 17 billion.