Steady growth seen in microfinance sector

F.P. Report

KARACHI: The Quarterly edition of Pakistan Microfinance Network’s Microwatch is out highlighting the growth in the microfinance sector for the year 2022. The microfinance industry showed positive signs of growth as it recovers from the impact of the 2022 flood crisis.

By the end of 2022, Credit and Savings Microfinance indicators depicted a steady growth trajectory in the post-flood era. The number of active borrowers in the microfinance industry crossed 9.0 million, which is a 3.6 percent increase compared to the previous quarter. The number of active women borrowers also showed a similar trend, with a 13.6 percent increase compared to the previous year, 2021.

In terms of market share and lending portfolio, Khushhali Microfinance Bank (KBL) led the market with an 18 percent share and a lending portfolio of 89 billion PKR, closely followed by HBL Microfinance bank with a market share of 17.9 percent and a GLP of 87 billion PKR. For active borrowers, Mobilink Microfinance Bank (MMFB) led with a market share of 28.2 percent and a borrower base of 2.6 million, while KBL followed with a market share of 8.1 percent and a borrower base of 737 thousand. On the NBMFCs front, NRSP led with active borrowers of 723 thousand, followed by Akhuwat and KASHF with 692 thousand and 639 thousand, respectively.

Akhuwat led with a Gross Loan Portfolio of 30.7 billion PKR, followed by KASHF and NRSP with portfolios of 22 billion PKR approximately.

Microsavings indicators also showed positive trends. The saver base increased by 4.7 percent to reach 93 million, and Telenor Microfinance Bank (TMFB) led the growth by 9.5 percent, adding 2.8 million depositors to its saver’s portfolio. MMFB and TMFB continued to dominate the market with a total of 77 million active saver bases. While there was a considerable increase in the savers base, there was a noticeable increase of 14.4 percent in savings value, bringing the total to 514 billion PKR at the end of quarter 4, 2022.

This positive growth in the sector shows promise for the future as the microfinance sector continues to recover from the challenges brought on by the 2022 floods.