ISLAMABAD: Pakistan Telecommunication Company Limited (PTCL) and U Microfinance Bank Ltd (U Bank) announced successful conversion of U Bank’s subordinated debt into equity, signed by both institutions for an amount of Rs 1,000 million during a ceremony held in Islamabad.

President and Group CEO, PTCL & Ufone, Hatem Bamatraf and President & CEO, U Bank, Kabeer Naqvi, signed the document. This conversion will enable the bank to further capitalize on the growth opportunities possible in Pakistan’s financial sector, spread across a heterogenous spectrum of rural, corporate finance & treasury, urban, corporate, Sharia, and digital banking services, thus catapulting bank’s transformation into a challenger retail bank.

Speaking at the ceremony, Hatem Bamatraf, President and Group CEO, PTCL & Ufone, said, “Seeing the potential in U Bank’s ability to further expand and grow, PTCL endeavours to contribute and support the bank in capturing new segments and customer classes to include more of Pakistan into the banking net and further its ambition of financial and social inclusion. This is not only in line with PTCL’s commitment to support the country and its economy but also to strengthen ties between banking and telecom sector.”

Speaking on the occasion, Kabeer Naqvi, President & CEO, U Bank said, “U Bank, thus far, has been successfully enabling underserved Pakistanis and has been positively contributing towards their economic empowerment.

Bank has now embarked upon the exciting journey of penetrating into newer market segments, through its six specialized business canvases, to widen its existing customer base and create more impact. This conversion is a testament of our sponsor’s confidence in our ability to deliver positive results. It also reiterates PTCL’s commitment towards contributing to the socio-economic uplift & enablement of Pakistan.”

Copyright Business Recorder, 2022