Halan Microfinance Bank has received a substantial capital injection of Rs. 1.425 billion (equivalent to USD 5 million), signaling strong backing from its new shareholders and a renewed focus on expansion and financial stabilization. This capital boost comes in the wake of the bank’s recent acquisition by MNT Halan Pak B.V., a Netherlands-registered company, which acquired 100 percent shareholding from the previous owner, Advance S.A. Sicar.
As part of its strategic transformation and business development initiatives, Halan Microfinance Bank also received a further capital injection of Rs. 600 million in 2025 from its parent company. The funding is being utilized to support an aggressive expansion strategy that includes the launch of 75 new business units in the coming months, aimed at extending financial services to underbanked regions of Pakistan.
Previously operating with just 19 branches, the bank embarked on this expansion plan under the direction of the new management. By the end of 2024, five additional branches had been inaugurated in Sindh province. In parallel, the bank implemented a cost-efficient model and received regulatory approval to establish 25 low-cost service centers, also in Sindh. These centers are expected to go live during 2025, further broadening the bank’s reach across the region.
To reinforce its growth ambitions, the microfinance bank increased its authorized capital from Rs. 2 billion to Rs. 5 billion. This move ensures compliance with regulatory benchmarks such as the Capital Adequacy Ratio (CAR) and Minimum Capital Requirement (MCR), while also enabling financial flexibility for future expansions.
In 2024, shareholders injected Rs. 825 million in capital to fulfill regulatory mandates and absorb anticipated losses resulting from operational restructuring. Despite this, the bank recorded a loss after tax of Rs. 727.3 million in 2024, more than doubling the Rs. 329.9 million loss reported in 2023. The increased losses are largely attributed to the restructuring efforts initiated post-acquisition, which led to a contraction in the bank’s lending activities—historically its primary source of revenue.
The restructuring process was designed to streamline operations, realign institutional priorities, and address internal inefficiencies. As a result, while the short-term financials reflected increased losses, the bank’s leadership remains confident that the changes will yield long-term benefits.
The capital restructuring also resulted in the issuance of right shares amounting to Rs. 825 million. As of December 31, 2024, the bank’s paid-up capital had risen to Rs. 2.870 billion, placing it in a strong position to meet the State Bank of Pakistan’s regulatory thresholds. The bank reported a Capital Adequacy Ratio of 15.30%, comfortably above the required minimum.
The parent company has also committed to investing an additional USD 10 million over the coming years to enhance the bank’s technological infrastructure and service delivery mechanisms. This aligns with broader efforts to digitize operations and offer innovative financial services to underserved populations.
Renamed officially as Halan Microfinance Bank Limited on September 16, 2024, following the acquisition finalized on March 20, 2024, the bank is poised for a new chapter of growth. The capital infusion and strategic pivot highlight the shareholders’ strong commitment to establishing Halan as a leading force in Pakistan’s evolving digital and financial services ecosystem.