MICROCAPITAL BRIEF: FINCA Becomes Majority Shareholder of Kashf Microfinance Bank of Pakistan with $8.4m Investment

Kashf Microfinance Bank Limited (KMBL), a Pakistan-based microfinance bank (MFB), recently announced an equity injection of PKR 824.7 million (USD 8.4 million) from FINCA Microfinance Coöperatief U.A., a Netherlands-based entity controlled by US-based NGO FINCA International. This transaction makes FINCA the majority shareholder in KMBL with 82.8 percent of the shares. KMBL has not released the identities of its other shareholders. As part of its role as majority owner of the MFB, FINCA will provide it with technical assistance relating to job creation and poverty alleviation [1].

As of 2011, KMBL reported total assets of USD 16 million, gross loan portfolio of USD 7.8 million, 20,014 active borrowers, deposits of USD 12.7 million, 121,423 depositors, return on equity of -62.46 percent and percent return on assets of -13.05 [2]. KMBL was founded in 2008 by the Kashf Foundation, a microfinance institution in Pakistan that had a gross loan portfolio of USD 31.2 million, deposits of USD 56,322 from 80,067 depositors, 286,443 active borrowers, 154 branches and total assets of USD 40.7 million as of 2011.

As of December 2011, FINCA International reported total assets of USD 719 million and served 900,000 clients through its subsidiaries in 21 countries. FINCA Microfinance Coöperatief is controlled by FINCA Microfinance Holding Company (FMH), a for-profit subsidiary of FINCA International.

About FINCA International
Founded in 1984 by Dr John Hatch, who is known for helping develop village banking in which each member of the village bank ensures the loan of other members, the Foundation for International Community Assistance (FINCA) International is a microfinance network based in Washington, DC, that provides financial services to poor families through a network of locally managed institutions. FINCA targets its services to poor women living in the Americas, sub-Saharan Africa and Eurasia. As of December 2011, FINCA International served 900,000 clients through its subsidiaries in 21 countries. It had total assets of USD 719 million in the 2011 fiscal year, with an operating profit of USD 33.9 million. In December of 2011, FINCA launched a subsidiary, FINCA Microfinance Holding LLC, with funding from the International Finance Corporation (IFC), KfW Bankengruppe, Nederlandse Financierings-Maatschappijvoor Ontwikkelingslanden NV (FMO), responsAbility Social Investments, and Triple Jump.

About Kashf Microfinance Bank Limited
Kashf Microfinance Bank Limited (KMBL) is a microfinance bank that was founded in 2008 by the Kashf Foundation, a microfinance institution (MFI) in Pakistan. It offers various lending and deposit products. As of 2011, KMBL reported total assets of USD 16 million, gross loan portfolio of USD 7.8 million, 20,014 active borrowers, deposits of USD 12.7 million, 121,423 depositors, return on equity of -62.46 percent and percent return on assets of -13.05.

About Kashf Foundation
Kashf Foundation is a microfinance institution (MFI) in Pakistan. It began in 1996 as a research program, which focused on the demand for microfinance services by poor women. According to US-based nonprofit Microfinance Information Exchange (MIX), Kashf Foundation had total assets of USD 40.7 million, a gross loan portfolio of USD 31.2 million, deposits of USD 56,322 from 80,067 depositors, 286,443 active borrowers, 154 branches, as of December 31, 2011. Savings services are available through Kashf Microfinance Bank, which the Foundation established in 2008. As of 2011, Kashf Microfinance Bank Limited reported total assets of USD 16 million, gross loan portfolio of USD 7.8 million, 20,014 active borrowers, deposits of USD 12.7 million, 121,423 depositors, return on equity of -62.46 percent and percent return on assets of -13.05.

Sources and Additional Resources

[1] Business Recorder Story, “FINCA Becomes Majority Shareholder in KMBL,” http://www.brecorder.com/money-a-banking/198/1194190/

MicroCapital Story, January 22, 2013, “MICROCAPTIAL BRIEF: Microfinance Network FINCA International Opens Data Processing Center in US,” https://www.microcapital.org/microcaptial-brief-microfinance-network-finca-international-opens-data-processing-center-in-us/

MicroCapital Story, November 1, 2012, “MICROCAPITAL BRIEF: SME Business Support Fund, Kashf Microfinance Bank Partner,” https://www.microcapital.org/microcapital-brief-sme-business-support-fund-kashf-microfinance-bank-partner/

MicroCapital Story, September 22, 2010, “MICROCAPITAL BRIEF: Obama Attends Sixth Annual Meeting of Clinton Global Initiative (CGI), Microfinance Initiative by Pakistan’s Kashf Foundation Announced,” https://www.microcapital.org/microcapital-brief-obama-attends-sixth-annual-meeting-of-clinton-global-initiative-cgi-microfinance-initiative-by-pakistans-kashf-foundation-announced/

MicroCapital Story, April 27, 2010, “MICROCAPITAL BRIEF: Kashf Foundation and Kashf Microfinance Bank, Two Microfinance Institutions (MFIs) in Pakistan, Agree to Set Up Savings Kiosks at Kashf Foundation Branches,” https://www.microcapital.org/microcapital-brief-kashf-foundation-and-kashf-microfinance-bank-two-microfinance-institutions-mfis-in-pakistan-agree-to-set-up-savings-kiosks-at-kashf-foundation-branches/

MicroCapital Universe Profile: Kashf Microfinance Bank Limited
https://www.microcapital.org/microfinanceuniverse/tikiindex.php?page=Kashf+Microfinance+Bank

MicroCapital Universe Profile: Kashf Foundation
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Kashf+Foundation

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.

Similar Posts: