The State Bank of Pakistan (SBP), the nation’s central banking authority, has granted a “business commencement certificate” for the nonprofit National Rural Support Program (NRSP), to operate its NRSP Microfinance Bank as a regulated microfinance institution (MFI) in all areas of Pakistan. NRSP has offered microfinance services on a self-regulated basis since 1991. In 2008, NRSP internally approved the transformation of these operations into a regulated microfinance bank, which was registered and licensed as NRSP Microfinance Bank in 2009 [2].
As of early 2011, NRSP operates in 46 districts in Pakistan and has approximately 576,000 active borrowers and a savings base of PKR 600 million (USD 7 million) [2]. As of 2009, NRSP reported total assets of USD 81.5 million, return on assets of 2.31 percent and return on equity of 16.3 percent.
By: Alexandra Pattee, Research Associate
About State Bank of Pakistan (SBP): Established in 1956, the State Bank of Pakistan (SBP) is the nation’s central banking authority. SBP performs the following primary functions: to regulate and supervise the nation’s financial system, to carry out monetary policy and to manage public debt. In addition, SBP serves to develop the financial framework of the country, provide credit to priority sectors and further the Islamization of the banking system.
About National Rural Support Program Microfinance Bank (NRSP MF Bank): National Rural Support Program (NRSP) Microfinance Bank is a microfinance bank based in Islamabad. Founded in 1991, NRSP is a Pakistani rural development nonprofit that seeks to improve the quality of life for rural people through harnessing their potential to implement various development programs on their own. NRSP conducts its operations through four sectors: microfinance, human recourse development, physical infrastructure and technology development and social sector services. In 2008, NRSP internally approved the transformation of its microfinance operations into a regulated microfinance bank. NRSP Microfinance Bank was thus registered and licensed in 2009. NRSP holds a 52 percent stake in the microfinance bank. Other investors include International Finance Corporation, Acumen Fund and KFW, a German public law institution. As of 2011, NRSP Microfinance Bank operates in 46 districts in Pakistan and has approximately 576,000 active borrowers and a savings base of PKR 600 million (USD 7 million). As of 2009, NRSP reported total assets of USD 81.5 million, return on assets (ROA) of 2.31 percent and return on equity (ROE) of 16.3 percent. NRSP is a non-governmental organization (NGO).
[1] Daily Times, March 4, 2011, “NRSP MFB allowed to work as nationwide entity”, http://www.dailytimes.com.pk/default.asp?page=2011%5C03%5C04%5Cstory_4-3-2011_pg5_2
[2] Email Correspondence with National Rural Support Program (NRSP)
MicroCapital.org Article, March 23, 2011, “International Finance Corporation (IFC) to Purchase 18 Percent Stake in National Rural Support Programme Microfinance Bank (NRSP MF Bank) of Pakistan in Effort to Boost Farmers’ Access to Finance”, https://www.microcapital.org/microcapital-brief-international-finance-corporation-and-daiwa-securities-group-inc-announce-plan-to-issue-bond-expect-to-raise-323m-to-support-microfinance-in-emerging-markets/
MicroCapital.org Article, December 3, 2010, “State Bank of Pakistan (SBP) Increases Minimum Capital Requirement for Microfinance Banks”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-increases-minimum-capital-requirement-for-microfinance-banks/
MicroCapital.org Article, November 17, 2010, “State Bank of Pakistan (SBP) Aims to Ensure Sustainable Development of Microfinance Industry”, https://www.microcapital.org/microcapital-brief-state-bank-of-pakistan-sbp-aims-to-ensure-sustainable-development-of-microfinance-industry/
MicroCapital’s Microfinance Universe: State Bank of Pakistan (SBP), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=State+Bank+of+Pakistan+(SBP)
MicroCapital’s Microfinance Universe: National Rural Support Program Microfinance Bank (NRSP MF Bank), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Rural+Support+Program+Microfinance+Bank+(NRSP+MF+Bank)
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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