Expanding Access to Credit for Agriculture and Micro, Small, and Medium-Sized Enterprise Borrowers in Pakistan
Project Result / Case Study | 9 January 2018
This project involves a loan of up to $20,000,000 or Pakistan rupee equivalent to Khushhali Bank Limited to expand credit access for agriculture and micro, small, and medium-sized enterprises in Pakistan.
Khushhali Bank Limited (KBL)
$20 million loan in dollars or Pakistan rupees
- KBL is the largest microfinance bank (MFB) in Pakistan, with a presence in all districts in the country and a network of 129 branches.
- KBL has the largest client base among MFBs in Pakistan, with diverse products for both loan and deposit clients. It now has over 1 million depositors and more then 50,000 borrowers. The bank also offers remittance services and microinsurance products.
- KBL’s 5-year strategy is to transform its portfolio from primarily micro, group-based loans to a good mix of group, individual, and micro, small- and medium enterprise (MSME) loans. ADB’s funding will help in the product expansion and diversification of KBL’s loan portfolio.
- The project will improve financial inclusion with its focus on agri-borrowers and MSMEs. Up to 25% of ADB’s funding will be targeted at female borrowers.
- ADB will also provide a technical assistance grant to support the establishment of an MSME training academy, as well as investments in KBL’s risk management systems.
ADB’s value addition
- Broaden access to finance, as ADB’s funding will help KBL to continue to grow and to reach unbanked, lower-income customer segments in Pakistan.
- Support the development of microfinance banking in Pakistan.
12 December 2016
This case study is originally published in Asian Development Bank Private Sector Operations, a brochure describing the work of ADB's Private Sector Operations Department, its main goal, sector focus, portfolios, and case studies on projects approved in 2016.