During the first quarter of 2023, the microfinance industry achieved a significant milestone by crossing the PKR 500 billion mark in the gross loan portfolio and penetrating almost one-fourth of the potential market. The number of active borrowers increased to 9.3 million, which represents a 1.8% increase on a quarter-on-quarter basis.
The percentage of women clientele also increased by 2%. Splitting the clientele into two peer groups, Microfinance Banks (MFBs) had 6.1 million active borrowers while Non-Banking Microfinance Companies (NBMFCs) had 3.2 million.
On the Gross Loan Portfolio front, the portfolio increased by 3.7% to reach PKR 509 billion. Splitting the Gross Loan Portfolio by peer group, MFBs closed their portfolio at PKR 394 billion, which translates into an increase of 4%, while NBMFCs closed their portfolio at PKR 115 billion, which translates into a 3.5% increase.
In terms of market share, Mobilink Microfinance Bank (MMFB) leads the clientele front with 2.6 million clients (43%), followed by Khushhali Bank Limited (KBL) with 0.7 million clients (12%). On the Gross Loan Portfolio side, HBL Microfinance Bank leads the landscape with a portfolio of PKR 92 billion (18%), followed by KBL with PKR 89 billion (17.5%).
