MICROCAPITAL BRIEF: United International Group (UIG) of Pakistan to Purchase Network Microfinance Bank (NMB), Rename it as Apna Microfinance Bank

network microfinance bank

The United International Group (UIG) of Pakistan reportedly completed purchase of the Network Microfinance Bank Limited (NMB) on January 16, 2012, for an undisclosed sum of money. NMB, a Pakistani microfinance institution established in 2005, was previously a part of the JS Group, a Pakistani financial services institution. UIG also owns United Insurance Company of Pakistan, Tawasul Insurance Abu Dhabi, United Track System, SaudiPak Insurance Company and United International Agro Services.

UIG Chairman Mian Shahid says that the acquisition will give UIG the opportunity to serve the unbanked population, and that it will focus on providing financial services to farmers, the agricultural market, microenterprises and individuals. NMB will be renamed Apna Microfinance Bank [1].

For the year 2010, NMB had a gross loan portfolio of USD 719,847 and 5,734 borrowers. Its total assets were reported at USD 2.9 million with a return on assets of -6.10 percent. The US-based nonprofit Microfinance International Exchange (MIX) offers data on 31 microfinance institutions in Pakistan that held a total gross loan portfolio of USD 279 million as of 2010. Financial details on UIG are unavailable.

About Network Microfinance Bank

Network Microfinance Bank Limited (NMB) of Pakistan was established in January 2005 as

a public limited company listed on the Karachi Stock Exchange. It was formerly known as Network Leasing Corporation Limited, which was a micro-leasing institution established in 1995. The mission of NMB is “to provide access to a complete range of formal banking services to micro entrepreneurs engaged in income generating activities and to under privileged people on an ongoing basis.” In January 2010, NMB, previously a part of a Pakistani financial services institution, JS Group, was bought by United International Group and was to be renamed Apna Microfinance Bank. For the year 2010, NMB had a gross loan portfolio of USD 719,847, providing loans to 5,734 borrowers. Its total assets were reported at USD 2.9 million with a return on assets of -6.10 percent.

By Charlotte Newman, Research Associate

Sources and Additional Resources:

[1] “Network Microfinance Bank: United International Group Completes Buy,” http://tribune.com.pk/story/322498/network-microfinance-bank-united-international-group-completes-buy/

MicroCapital.org story, December 27, 2011, “MICROCAPITAL BRIEF: Asasah of Pakistan to Collect Microloan Repayments via Easypaisa Service of Tameer Microfinance Bank, Telenor Pakistan,” http://www.microcapital.org/microcapital-brief-asasah-of-pakistan-to-collect-microloan-repayments-via-easypaisa-service-of-tameer-microfinance-bank-telenor-pakistan/

Microfinance International Exchange: Microfinance in Pakistan: Country Profile http://www.mixmarket.org/mfi/country/Pakistan

MicroCapital Universe Profile: Apna Microfinance Bank http://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Apna+Microfinance+Bank+%28formerly+Network+Microfinance+Bank%29

Browse the MicroCapital Universe and add your entry to the wiki at http://www.microcapital.org/microfinanceuniverse/

Source: www.microcapital.org

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