Microfinance banks loans cross Rs200bln

April 15, 2018 12:00 AM

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Microfinance banks loans cross Rs200bln

KARACHI: Pakistan’s microfinance banks' gross loan portfolio surged to Rs202 billion by the end of 2017 showing the sector was gradually expanding with an increasing penetration of services across the country, Pakistan Microfinance Network (PMN) said on Saturday.

“The number of active borrowers stands at 5.8 million with the total number of loans stands at 1.8 billion spread over in 106 districts of the country,” the PMN said in a release.

The microfinance institutions’ body said on top of that the number of savers maintaining their banks accounts in microfinance banks was 30 million with an amount of Rs186 million.

“The average loan size is Rs 48,695 per borrower whereas the average saving size is Rs. 6,033 per saver,” the PMN added.

The network said the microfinance sector was not only empowering people financially but it was also helping increase the saving-to- GDP ratio in the country, which was comparatively low in the region particularly in the documented sector.

It further said on the other hand, the expanding network of various microfinance banks has reached 3,673 branches in 106 districts of the country.

“This indicates the local and foreign investment in the sector along with generation of the employment to thousands of educated workers in the country,” the micro lenders association said.

Based on impressive growth and penetration of the microfinance bank, PMN said it has set an ambitious target for microfinance banks to increase the borrowers’ base up to 10 million by end of 2020. “The mircofinance banks aim to increase insurance policyholders to 11 million, depositors to 50 million, and financial access points to 400,000 by 2020,” it added.

Also read: Raees Paracha given additional charge of Banking Ombudsman

Source: thenews.com.pk

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