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Halan Microfinance Bank has received a fresh capital injection of Rs. 1.425 billion (USD 5 million) following its acquisition by MNT Halan Pak B.V., a Dutch-registered company.
The investment signals a new era of expansion and financial strengthening for the bank under its new ownership.
The bank, formerly known as ADVANS Pakistan Microfinance Bank Limited, was officially renamed to “Halan Microfinance Bank Limited” on September 16, 2024, after MNT Halan Pak B.V. completed its 100% acquisition on March 20, 2024.
Previously operating with 19 branches, the bank has already opened five new branches in Sindh and plans to launch 75 business units across the country. Additionally, it has secured regulatory approval for 25 low-cost service centers in Sindh, which are expected to go live in 2025.
To support its growth ambitions, the bank raised its authorized capital from Rs. 2 billion to Rs. 5 billion, ensuring alignment with Capital Adequacy Ratio (CAR) and Minimum Capital Requirement (MCR) benchmarks. As of December 31, 2024, the paid-up capital stood at Rs. 2.870 billion, reflecting the issuance of right shares worth Rs. 825 million.
Ongoing Shareholder Commitment
The capital infusion reflects the new shareholders’ long-term commitment. In addition to the recent Rs. 1.425 billion, they had previously invested Rs. 825 million in 2024 to meet regulatory requirements in light of projected losses. The parent company has also announced plans to inject $10 million into Halan’s banking infrastructure over the coming years. So far, a total of Rs. 5 billion has been committed, with further equity inflows expected.
Halan reported a loss after tax of Rs. 727.3 million for 2024, a steep rise from Rs. 329.9 million in 2023. This increase was attributed to a strategic restructuring process undertaken by the new management, which led to a temporary contraction in loan disbursement, one of the bank’s main revenue streams.
Inspired by its parent company, MNT Halan’s digital success in Egypt, the bank is now rolling out a comprehensive digital roadmap to modernize its services. Currently serving 50,000 customers, Halan aims to scale its customer base to 200,000 citizens by 2025.
