Some stories are about growth.

Others are about survival.

But once in a generation, a story emerges about resurrection.

When TPL and ABHI came together to enter the banking sector, they were not searching for an easy acquisition. They were stepping into one of the most challenging institutional recovery situations in Pakistan’s financial services industry.

FINCA International, the outgoing shareholder, had built an institution that had served thousands with dedication over many years. However, the devastating aftermath of COVID-19 created losses that could no longer be sustained. Even during the transition, one principle remained central to FINCA’s approach: ensuring that the institution was entrusted to a group that would not merely restore the balance sheet, but would also protect its people, preserve livelihoods, and rebuild its future responsibly.

What was inherited was not simply a struggling financial institution. It was an organisation that had lost momentum, confidence, morale, and direction. The atmosphere was burdened by uncertainty. Fear had replaced ambition, culture had weakened and belief in the future had diminished.

Its reputation had suffered. Collections had collapsed. Statutory audits had not been completed for three years. The institution’s rating stood suspended. More than 100,000 customers had effectively ceased repaying their obligations and the existing business model was no longer suited to sustainable growth.

Yet within little more than a year, one of the most remarkable turnarounds in Pakistan’s banking history was achieved, made possible through the collective commitment of investors, the steadfast support of shareholders and the close guidance of the regulator.

The foundation of this transformation rested upon three pillars: unwavering capital commitment from shareholders, strategic regulatory support from the State Bank of Pakistan and an uncompromising commitment to performance from management and employees. Each pillar was indispensable. Without investor confidence, the institution could not survive. Without regulatory trust, it could not operate effectively. Without disciplined execution, it could not recover.

Alongside these pillars sat a fourth principle that shaped every major decision: risk preservation.

A commitment was made to the regulator, shareholders and the institution itself that, whilst growth would be pursued aggressively, a new wave of non-performing loans would not be permitted to enter the bank. Growth without discipline would merely have repeated the mistakes of the past. Urgency was therefore balanced with an intense focus on portfolio quality and sustainable foundations.

Conventional wisdom often advocates caution: repairing compliance gaps first, delaying expansion and postponing growth until every ratio has normalised. However, institutions rarely return to life through fear. They recover through momentum, conviction and decisive action.

Accordingly, action was taken.

As engagement began with employees across branches and departments, an important insight quickly emerged: the problem was not the people. The quality of talent within the institution had never been substandard. Operational capability already existed. What had failed was strategy, direction and belief.

That realisation changed everything.

Leadership entered a period of active listening, travelling from branch to branch, engaging directly with teams, understanding frustrations, rebuilding confidence and reconnecting the institution to its people. The immediate priority was restoring collection discipline. Simultaneously, teams were encouraged to pursue sales with equal focus in order to generate revenue and revive the institution’s financial engine.

At that stage, the transaction itself remained in the due diligence phase. The institution was losing nearly Rs 200 million each month and uncertainty surrounded its future. Nevertheless, a commitment was made that before significant capital injections arrived, operational recovery would first be demonstrated through performance alone.

Then something remarkable occurred.

The institution reported a monthly profit of Rs 11 million before any fresh capital had been injected. Financially, the figure was modest. Symbolically, it changed everything. It became the first tangible signal to employees that recovery was possible. Confidence returned. Energy returned. Teams began believing in themselves once again and with belief came momentum.

That renewed confidence became the foundation for everything that followed.

At the same time, it was recognised that further cost-cutting would only weaken the institution. Previous efforts to reduce expenses had gone so far that the organisation had effectively “cut into the bone”. A different approach was required. This was a moment for investment rather than retreat.

Despite operating under difficult conditions, an aggressive deposit mobilisation strategy was pursued. Conventional thinking suggested that meaningful deposit growth would be impossible without published financial statements and complete compliance alignment. Instead of waiting for ideal circumstances, teams entered the market with determination, urgency and confidence.

The results were extraordinary.

Within a relatively short period, the deposit book more than doubled. Those funds were strategically deployed into the loan portfolio, which expanded to almost three times its original size. Through the same branch network that had previously managed a portfolio of approximately Rs. 16 billion, more than Rs. 30 billion was added to the loan book. Productivity accelerated significantly, demonstrating that exponential impact did not require a larger footprint; it required clarity, alignment and execution.

One of the defining moments of the transformation followed: the relocation of the institution to Islamabad.

This was not merely a logistical decision. It represented a symbolic rebirth.

More than 150 families relocated, carrying with them hopes, ambitions, uncertainty and faith in a better future. Together, they embraced a vision not of rebuilding the old institution, but of creating an entirely new one.

The State Bank of Pakistan deserves significant credit for recognising the seriousness of this ambition. The regulator provided a structured timeline to achieve compliance targets over several years whilst operations were stabilised and the institution rebuilt responsibly. That trust became one of the cornerstones of the recovery.

Today, 114 branches and the same 550 loan officers manage a significantly larger and more efficient portfolio than before. Historical audits have been completed. Legacy accounts have been updated. Operational governance has strengthened. Compliance milestones are being achieved well ahead of expectations.

By the end of 2025, the bank had reported Rs. 1 billion in profit after tax, representing an extraordinary Rs. 2.7 billion swing in profitability within an exceptionally short period. The market witnessed not merely recovery, but transformation on a significant scale.

What many had considered beyond repair became one of the fastest institutional revivals in Pakistan’s recent financial sector history.

Yet this is not the destination.

The shareholder’s origins have always been rooted in technology and financial innovation. The long-term vision was never simply to operate another traditional bank. The ambition is to build a regional digital banking institution capable of redefining access to financial services through technology.

The next phase of ABHI Bank is therefore focused on digital banking, Banking-as-a-Service, embedded finance and expanding access to credit wherever it is needed most. The future of banking will not be confined to branches or traditional models. Banking must become integrated into everyday ecosystems, seamlessly accessible to individuals and businesses across markets and geographies.

This transformation is therefore about far more than a bank. It is about restoring belief.

Belief that institutions in Pakistan can recover. Belief that leadership still matters. Belief that regulators, investors, boards and employees can work together to rebuild something extraordinary. Belief that even in challenging environments, courage and conviction can still produce remarkable outcomes.

Today, ABHI Bank stands not merely as a financial institution, but as proof that decline is not destiny.

Faith in Pakistan’s future remains unwavering and this comeback is only the beginning.

The writer, Kabeer Naqvi, is an industry veteran currently serving as Entrepreneur in Residence with the Abhi Group, responsible for building its digital bank in Pakistan. He is also the former chairman of the Pakistan Microfinance Network.

This content is an advertorial by ABHI Bank and is not associated with or necessarily reflective of the views of Dawn.com or its editorial staff.