The State Bank of Pakistan has allowed Sindh Microfinance Bank Limited to commence microfinance banking business at provincial level in the province of Sindh. Earlier, the SBP had issued a license to the microfinance bank.
Sindh Microfinance Bank, a wholly owned subsidiary of Sindh Bank Limited, now becomes the 11th microfinance bank to operate in the country. In Pakistan, nine microfinance banks are already operating on nation-wide basis whereas one MFB is operating at province level.
The commencement of business of Sindh Microfinance Bank Ltd will result in a significant increase in the market share of regulated microfinance banks (MFBs) within the overall microfinance sector. This will also lead to the increased provision of inclusive micro-finance and related-financial services to the less-privileged and unbanked segments of the society. It is expected that Sindh Microfinance Bank Ltd will contribute towards poverty alleviation as per the mandate under the Microfinance Institution Ordinance, 2001.