Halan Microfinance Bank Secures $5M, Plans 75 New Units and Digital Push

Mounir Nakhla, Halan Founder & CEO

Halan Microfinance Bank received a capital injection of Rs. 1.425 billion (USD 5 million) from its new shareholders after it was acquired by the MNT Halan Pak B.V., a company registered in the Netherlands, from Advance S. A. Sicar.

According to the financial statement for the closing year 2024, the microfinance bank received a capital injection of Rs. 600 million in 2025 from the parent company as part of its expansion plan to open 75 business units in the coming months.

Previously operating with 19 branches, the bank initiated an expansion plan under the new management. By the end of 2024, five new branches had been opened in the Sindh province. Additionally, the bank adopted a low-cost model and secured approval for 25 service centers in Sindh, which are expected to become operational in 2025.

The statement also mentioned that the new shareholders envision an expansion of the bank’s footprint across Pakistan; hence, to support this vision, the bank increased its authorized capital from Rs. 2 billion to Rs. 5 billion. This increase was made to ensure compliance with the Capital Adequacy Ratio (CAR) and Minimum Capital Requirement (MCR), as well as to facilitate future expansion plans.

Last year, the new shareholders made a capital injection of Rs. 825 million to meet regulatory requirements considering the anticipated loss for the year 2024. The parent company of the microfinance bank also announced to invest $10 million in its banking system in the next few years.

Overall, the shareholders of the microfinance bank invested an amount Rs. 5 billion, while further equity is in the pipeline, demonstrating the shareholders’ strong commitment to the Bank’s financial stability and ambitious plans. During the year 2024, the microfinance bank reported a loss after tax of Rs. 727.3 million, compared to a loss after tax of Rs. 329.9 million recorded in 2023.

This significant increase in losses was primarily attributed to several factors, including the restructuring of bank operations post-acquisition by the new management, which resulted in a contraction of the loan booking of the bank’s primary revenue streams. The restructuring process was undertaken as part of a broader strategy to realign operations and address systemic challenges within the bank’s processes.

On March 20, 2024, MNT Halan Pak B.V., a company registered in the Netherlands, acquired 100% shareholding of ADVANS Pakistan Microfinance Bank Limited. On September 16, 2024, the bank was officially renamed “Halan Microfinance Bank Limited.”

The bank’s authorized capital increased to Rs. 5 billion as of December 31, 2024 whereas, paid up capital was increased by issuance of right shares of Rs. 825 million, and the current paid-up capital as of December increased to Rs. 2.870 billion. The bank met the minimum capital requirement set by the State Bank with a capital adequacy ratio of stood at 15.30%.

The bank is also implementing a comprehensive digital roadmap inspired by the success of its parent company, MNT Halan, in Egypt. The bank is serving 50,000 customers, and its goal is to grow up to 0.2 million citizens by 2025.

Source: ProPakistani