Apna Microfinance Bank Limited (AMBL), a microfinance services provider, said that the “proposed merger negotiations” with FINCA Microfinance Bank Limited (FINCA) have ceased, while it seeks other opportunities.

The bank, which is principally engaged in the business is to provide microfinance services to the poor and underserved segment of society, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Monday.

“We would like to inform you that the proposed merger negotiations between FINCA Microfinance Bank Limited and Apna Microfinance Bank Ltd have been stopped,” read the notice.

The microfinance bank informed the decision comes after both parties completed the reciprocal due diligence process.

“Further, the APNA is exploring other opportunities to secure the interest of its stakeholders, depositors, borrowers, regulator, partners, and staff,” it added.

Earlier this year, AMBL, after seeking the in-principle conditional approval from the State Bank of Pakistan (SBP), entered into a Memorandum of Understanding (MoU) with FINCA as the two MFBs were considering combining their operations to create “a more efficient microfinance bank”.

“The resulting combined entity is expected to generate significant benefits for all stakeholders through economies of scale,” said AMBL back then.

The listed entity back then was of the view that “the increased market share and cost competitiveness will strengthen the Bank’s financial position to better serve the low-income segments across Pakistan by providing flexible micro-financing and saving schemes”.