SBP thumps up NRSP to operate as microfinance bank | Pakistan Today

SBP thumps up NRSP to operate as microfinance bank

KARACHI – The State Bank of Pakistan (SBP) has allowed NRSP Microfinance Bank (NRSP-MFB) to commence its countrywide operations as a microfinance bank, the central bank said on Thursday. Earlier, the central bank had issued a license to the bank that is envisaged to provide increased inclusive financial services in the country’s rural areas. Licensing of NRSP-MFB was the result of gradual transformation of National Rural Support Program (NRSP) into microfinance bank. The NRSP-MFB has now become the sixth microfinance bank to operate on national level, whereas two microfinance banks were operating at district level.
According to the State Bank, the bank would, initially, operate with a network of 38 branches in 13 districts of the country. However, initially, the NRSP operations in 13 districts were being transformed into NRSP-MFB, it added. Commencement of business of NRSP-MFB would result in a significant increase in the market share of regulated microfinance banks (MFBs) within the overall microfinance sector.
This would also lead to increased provision of inclusive financial services in the rural areas of the country. Currently, NRSP is the largest player in the microfinance sector with a market share of almost 22 percent. Other microfinance banks operating in the country include Tameer Microfinance Bank, Khushhali Bank, Pak Oman Microfinance Bank, The First Microfinance Bank, Rozgar Microfinance Bank, Kashf Microfinance Bank and Network Microfinance Bank.

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