Sindh Bank to launch Microfinance Bank

Sindh Bank has decided to launch Microfinance Bank to facilitate Small and Medium Enterprises (SMEs). Talking to newsmen at a signing ceremony of an agreement between Sindh Bank Limited and China UnionPay International here on Thursday, President/CEO of Sindh Bank, M Bilal Sheikh, said that management of the bank is in process of setting up a Microfinance Bank as a wholly-owned subsidiary, for which the bank has already obtained non-objection certificate (NOC) from the State Bank of Pakistan (SBP).
"SBP has already given go ahead to Sindh Bank for the establishment of a Microfinance Bank and now the management is awaiting Securities Exchange Commission of Pakistan's (SECP) approval to formally launch Microfinance Bank", he added. Initially, paid-up capital of the proposed Microfinance Bank will be some Rs 1 billion, he told newsmen. In the first phase, the proposed bank will operate in the Sindh, particularly in its interior/rural area to provide financial services to the unbanked masses, which needed small loans for SMEs, he added.
Talking about the bank's performance, president said that Sindh Bank in a short span of time has become one of the leading banks with 225 online branches across the country. The bank proudly claims to be the fastest growing commercial bank with a profit of Rs 5 billion in less than four years. "Our Islamic banking is also rapidly growing and presently the bank is operating some 25 Islamic branches across the country", Sheikh said.
Mobile top up, mark-up free student loans, agricultural financing, intra and interbank fund transfer facilities are some of the bank' products, he mentioned. Briefing about the Sindh Bank's agreement with China UnionPay International, he said that the accord is aimed at providing innovative financial solutions. Terming the agreement `a milestone', he said that it was in line with the bank's vision of providing alternate delivery channels. Moreover, it will also reinforce Pak-China trade relationship and facilitate Pakistan's payment industry.
On the occasion, chief representative of China UnionPay International (Africa, Pakistan & Lebanon), Li Zhixian, informed that UnionPay International (UPI) which is a subsidiary of China UnionPay focused on the growth and support of UnionPay's global business. In partnership with more than 300 institutions world-wide, UnionPay International has issued cards in more than 30 countries, enabling its acceptance in over 140 countries, he said, adding that UnionPay International provided high quality, cost effective and secure cross-border payment services to the world's largest card-holder base, ensuring convenient local services to a growing number of global UnionPay card-holders and merchants.
Earlier, Sindh Bank Ltd entered into an agreement with UnionPay International for issuing Debit Cards to their valued customers. The signing ceremony was also attended by Union Pay International's country manager (Pakistan) Asad Burney and CEO 1Link Faisal Ejaz Khan. The Sindh Bank, having a network of 225 online branches, with an access to 111, also has a countrywide ATM network. Besides, it enjoys long-term rating of AA and short-term rating of A-I+ with positive outlook.