PTCL Group Addresses Speculations on U Microfinance Bank’s Financial Strength

PTCL Group addresses recent rumors circulating on various platforms regarding UPaisa and U Microfinance Bank's capital base. These claims are entirely baseless and unfounded.

Press Release
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PTCL Group Addresses Speculations on U Microfinance Bank's Financial Strength

PTCL Group, is dedicated to debunking speculation regarding the soundness of U Microfinance Bank (Ubank), which is a completely owned subsidiary of the company. Ubank, one of Pakistan’s top microfinance banks, has a solid capital foundation and a stable financial structure.

The PTCL Group assures that the Ubank team, including management and field personnel, will continue to drive progress and innovation toward the bank’s fundamental goal of promoting financial inclusion for all segments of Pakistani society. Due to its sustainable growth strategy, Ubank has one of the biggest Gross Loan Portfolios in the business, making it stand out. Notably, gold backs 54% of this portfolio, highlighting the bank’s sound lending policies. Ubank has a wide range of products and services, including finance for solar energy, housing, agriculture, cars, and more.

The PTCL Group provides Ubank with strong support; Ubank has PKR 4 billion in paid-up capital, plus PKR 1 billion and PKR 1.2 billion in additional Tier-1 and Tier-2 capital from PTCL. A further PKR 1 billion in Tier-1 capital has been raised by the bank from the market. The steady inflow of capital, lending, deposits, and cash flows all contribute to Ubank’s ongoing financing base expansion.

The PTCL Group’s steadfast support for Ubank is reiterated by Hatem Bamatraf, President and Group CEO of PTCL & Ufone 4G and Chairman of the Board of Directors of U Microfinance Bank. He highlights the bank’s outstanding financial results and steady development trajectory, promising clients, shareholders, and investors further support going forward. Even though PTCL Group does not now require an equity infusion, it is nonetheless fully committed to satisfying its growth requirements in the future.

Thanks to its robust capital structure, varied income sources, and remarkable development trajectory, Ubank continues to hold an A+ long-term credit rating from VIS Credit Rating Company and PACRA Credit Rating Agency. Its sustainable business policies are acknowledged by both of Pakistan’s leading rating agencies, which recognize Ubank’s ‘Stable’ outlook.

The current president and CEO of U Microfinance Bank, Mohamed Essa Al Taheri, responds to recent rumors, calling them untrue and unfounded. He draws attention to Ubank’s capable management group and the unwavering backing of partners, stakeholders, investors, and clients as they pursue expansion and excellence.

Since its founding as a microfinance organization in 2012, Ubank has steadily increased its revenue. Its reach has extended throughout Pakistan’s rural and urban areas. Ubank has a large network of more than 350 outlets, indicating its dedication to serving unbanked people and offering easily accessible financial services and products. From a few hundred to over 4,800 committed workers spread throughout several cities and rural areas, the bank has expanded its staff, providing excellent job prospects in Pakistan.

U Microfinance Bank is strongly supported by PTCL Group, which dispels rumors regarding the bank’s financial stability and bolsters its dominant position in the market. Among the banking sector in Pakistan, Ubank is regarded as a reputable and trustworthy entity due to its remarkable financial performance, varied portfolio, and steady growth trajectory.

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