APNA Microfinance Bank Limited (PSX: AMBL) has announced that it has received formal approval from the State Bank of Pakistan (SBP) allowing Mobilink Microfinance Bank Limited to conduct due diligence, signaling the preliminary stage of a potential merger or acquisition between the two institutions. The approval was communicated through an official SBP letter dated February 6, 2026, addressed to the President and Chief Executive Officer of Mobilink Microfinance Bank Limited.
The central bank’s approval permits Mobilink Microfinance Bank to carry out a comprehensive due diligence review of APNA Microfinance Bank, provided that all applicable laws, rules, and regulations are adhered to during the process. According to the SBP letter, the due diligence exercise is a prerequisite and does not in itself constitute final approval for any merger or acquisition. Any subsequent request for a formal merger or acquisition would be evaluated separately, with SBP retaining the authority to impose conditions it deems necessary, including a satisfactory funding plan.
Under Section 48 of the Banking Companies Ordinance, 1962, if the due diligence and subsequent negotiations prove successful, APNA Microfinance Bank could be merged with Mobilink Microfinance Bank. As part of the due diligence process, all participating team members are required to sign confidentiality undertakings, copies of which must be submitted to the central bank. The approval for due diligence is valid for two months from the date of the letter, effectively until April 6, 2026.
SBP emphasized that the proposed transaction cannot involve the use of depositors’ funds at any stage, ensuring that customers’ financial interests remain protected throughout the process. The central bank also clarified that the current approval is limited strictly to conducting due diligence and should not be interpreted as final authorization for acquisition or merger.
APNA Microfinance Bank, in its statement issued today, highlighted that the development is at an early stage and has no immediate impact on the company’s financial position or ongoing operations. The announcement underscores a potential strategic consolidation in Pakistan’s microfinance sector, which could enhance operational efficiency, expand market reach, and create new growth opportunities for both institutions if the merger proceeds.
The due diligence exercise is expected to provide detailed insights into APNA’s operational, financial, and regulatory standing. These findings will serve as the foundation for discussions regarding potential merger terms, integration strategies, and risk mitigation plans. The banking sector and industry observers are closely monitoring the development, as successful consolidation could influence competitive dynamics and service delivery within Pakistan’s microfinance market.
This move also reflects broader trends in Pakistan’s financial sector, where microfinance banks and smaller financial institutions increasingly consider strategic partnerships and mergers to strengthen balance sheets, expand client outreach, and enhance digital and operational capabilities. Analysts note that the process is likely to be carefully scrutinized by regulators to ensure compliance with all statutory obligations, transparency, and customer protection standards.
With the due diligence phase now underway, both banks are positioned to explore synergies and assess strategic alignment while maintaining full operational continuity. The outcome of this preliminary stage will determine whether a formal merger or acquisition proposal is submitted to SBP for approval, marking a significant potential shift in Pakistan’s microfinance landscape.
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