Habib Bank acquires 51pc FMFB shares

E-Paper | December 05, 2025

KARACHI: Habib Bank Limited (HBL) said on Wednesday that it has acquired 51 per cent majority shareholding in the First Micro-Finance Bank Limited (FMFB), the oldest microfinance bank in Pakistan with presence in over 150 locations covering 66 districts.

A press release issued by the bank said the FMFB’s roots lie in the credit and savings programmes of the Aga Khan Rural Support Programme (AKRSP) dating back to 1982. A signing ceremony to mark the event was held on Wednesday in Islamabad in the presence of Princess Zahra Aga Khan and Prince Rahim Aga Khan.

FMFB offers targeted financial and multi-sectoral products and services based on the evolving needs of its clients, including a wide range of flexible loan products to serve the diverse financial needs of the unbanked and the under-banked in the rural, urban and semi-urban areas in Pakistan. The bank also offers micro-insurance products with credit and saving services to all borrowers to provide protection against life, health and financial liabilities.

HBL Chairman Sultan Ali Allana said the acquisition is in line with HBL’s commitment to be a leader in financial inclusion with an emphasis on serving customers from all segments of society across all areas of Pakistan.

Nauman K Dar, HBL’s President and CEO, said this investment would enable HBL to more directly influence the microfinance space, accelerate inclusion and rapidly scale up the customer base.

The HBL would provide guidance and enable FMFB to leverage technology-based synergies, such as branchless and mobile banking which are ideally suited to service this mass segment efficiently, he said.

Published in Dawn, May 26th, 2016

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Benjamin Franklin

May 26, 2016 12:22pm

HBL is growing fast mashallah. They are a very dynamic at the top end (executive management) and have been acquiring businesses to grow the bank. However, branch level banking is quite poor - staff is quite rude and does not offer much help. In the branch, you still feel it is a "sarkaree bank". I used to think that it was because of old employees (heritage of govt days) but in my last visit, almost all the team was young but same useless attitude and appear blank on simple requests or answering too quickly in negative without clearly understanding the issue.

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Pervaiz

May 26, 2016 05:31pm

The concept of Microfinance was to make landing for the most poor and marginalized segment of society on a special condition which no other institutions offer. almost zero collateral, but FMFB has been converted to a purely commercial institution where the employees are pushed for deposit gathering rather than loan disbursement. This concept is now further degraded by taking over by HBL. It will be just another regular fund collection branches of HBL and the very essence of financing the rural community is going to be on back seat forever. FMFB remain a failed Bank through it was the pioneer in Microfinance sector in Pakistan. they have not even learned from other MF Banks currently running the country. Another chapter of poor governance is covered up in the name of soft takeover.

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Anis Ahmed

May 26, 2016 08:48pm

@Benjamin Franklin , I fully agree with your comments. The condition of the bank going towards worst, most of the time misbaviour and rudeness of officers / staff irritated us badly, instead of improving service and courteous towards client, they behave as if they are the owner of the bank. Mostly, ATM's are not working or no money and sometimes ATM cards are stuck or they do not come out as I think the life of machines are expired or due to lack of maintenence and care, especially on weekends or on holidays, inspite repeated circulars from State Bank for stick implementation of banking regulations.

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