SBP Grants Approval to MCB for Due Diligence of Telenor Microfinance Bank

After the approval granted by the State Bank of Pakistan to MCB for the initiation of the due diligence to acquire 55% sponsor shares in Telenor Microfinance Bank (TMB). Pakistan Stock Exchange (PSX) posted these news.

According to the notice by the PSX, the State Bank of Pakistan granted MCB a conditional approval for the potential transaction of the 55% shares of Telenor Microfinance Bank Limited by Telenor Pakistan BV, which operates by the brand name of Easy Paisa.

On 27th October, 2021 MCB board of Directors held a meeting in which the 55% share transaction was approved before hand. The PSX was then notified of the planned acquisition and assurance was given that as a major bank will support the microfinance sector the acquisition will be for the betterment.

This notification came forward a few days after the United Bank Limited (UBL) was granted a similar approval of the proposed acquisition of 55% sponsor shares in TMB.

Telenor Pakistan and Ant Group jointly own Telenor Microfinance Bank. Ant is an affiliate company of the Chinese Alibaba Group. Late in 2018, Ant Financial bought a 45% share of Telenor Bank.

Back in 2005 the Telenor Microfinance Bank was established as Tameer Microfinance Bank. Later in 2009, first mobile banking platform by the name Easypaisa was launched by the bank. With the Easypaisa the mode of payment was digitalized.

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According to their financial statement, Telenor Microfinance Bank has earned  gross profit of Rs.1.245 billion by the end of September 2021. Initially, the bank was introduced as a branchless banking. It is the pioneer in it with the brand name Easypaisa. Now the Telenor Bank has expanded its innovative services countrywide.

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