Halan Microfinance Bank has announced a significant capital injection of Rs. 1.4 billion aimed at supporting its ambitious growth and expansion plans across Pakistan. According to the financial statement for the closing year 2024, Rs. 600 million of this amount was infused in 2025 by the bank’s parent company as part of a broader strategy to open 75 new business units in the coming months, reinforcing Halan’s commitment to broadening its footprint in the country’s underserved financial sector.
Previously, the bank operated with 19 branches before embarking on a comprehensive expansion under new management. By the end of 2024, the bank had opened five additional branches in the Sindh province, marking a significant step towards increasing financial accessibility in the region. Complementing the branch openings, Halan adopted a low-cost operational model and secured regulatory approval to establish 25 new service centers in Sindh, expected to become fully operational in 2025. This hybrid approach aims to balance accessibility with cost efficiency, allowing the bank to reach a wider customer base while managing operational expenditures effectively.
In line with its expansion strategy, the bank increased its authorized capital from Rs. 2 billion to Rs. 5 billion. This increase is designed to ensure compliance with the Capital Adequacy Ratio (CAR) and Minimum Capital Requirement (MCR) mandated by regulatory authorities and to provide sufficient financial bandwidth for its future growth initiatives. Last year, the shareholders had already injected Rs. 825 million to meet regulatory capital requirements, anticipating a challenging year ahead for 2024.
The parent company of Halan Microfinance Bank has further declared plans to invest $10 million into the bank’s ecosystem over the coming years. This infusion highlights the strong confidence of investors and shareholders in the bank’s long-term vision and ability to create sustainable value in Pakistan’s microfinance sector.
Collectively, shareholders have invested approximately Rs. 5 billion into the bank, with additional equity injections expected, underlining their robust commitment to financial stability and growth. Despite these positive developments, the bank reported a loss after tax of Rs. 727.3 million in 2024, reflecting a sharp increase from the Rs. 329.9 million loss recorded in 2023. This widening loss is mainly attributed to the restructuring efforts undertaken after the change in ownership, which led to a temporary contraction in loan bookings—the bank’s primary source of revenue.
The restructuring was part of a larger strategy aimed at realigning the bank’s operations and addressing systemic inefficiencies, setting the stage for more sustainable growth in the future. This period of transition reflects the challenges inherent in integrating new management practices and recalibrating operational processes to better serve customers and meet regulatory expectations.
On March 20, 2024, MNT Halan Pak B.V., a Netherlands-based company, completed the acquisition of 100% shareholding in ADVANS Pakistan Microfinance Bank Limited. Subsequently, on September 16, 2024, the bank was rebranded as Halan Microfinance Bank Limited, marking a new chapter in its corporate identity and strategic direction.
By the end of 2024, the bank’s authorized capital stood at Rs. 5 billion, while the paid-up capital increased to Rs. 2.870 billion following the issuance of right shares worth Rs. 825 million. The bank successfully met the minimum capital requirement set by the State Bank of Pakistan, maintaining a capital adequacy ratio of 15.30%, which is a positive indicator of its financial health and ability to absorb potential risks.
Halan Microfinance Bank’s recent capital boost and strategic expansion plans demonstrate its dedication to enhancing financial inclusion and providing accessible banking solutions across Pakistan. With continued investor support and a clear vision for growth, the bank is poised to strengthen its position in the competitive microfinance landscape while contributing to the broader goals of economic development and financial empowerment.
