The NMB, previously part of the JS Group, will prove an asset providing an opportunity to support unbanked population, said Mian Shahid, Chairman UIG.
The microfinance bank is the latest addition to the companies of United International Group, which already comprises United Insurance Company of Pakistan, Tawasul Insurance Abu Dhabi, United Track System, SaudiPak Insurance Company and United International Agro Services among others.
Speaking at a ceremony, he said that poor and low-income groups remain deprived of proper financial services, which is impeding their development. Around 56% of the adult population does not have access to formal financial services while only 10% of SMEs are served by banks resulting in socio-economic disparities.
Traditionally, banks would ignore providing loans to poor therefore microfinance banks should come forward to bridge the financial divide, he stressed.
Microcredit can cause reduction in interest rates by 30% to 60% and increase the level of savings among the poor, he informed. He said that Bangladesh, Kenya, India, South Africa, and Sri Lanka have been performing well in the microfinance sector while we still have a long way to go.
Mian Shahid said that we will focus on providing financial services to farmers, agriculture market, small-sized businesses and individuals.
Published in The Express Tribune, January 17th, 2012.
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