Eighteen months ago, we acquired a broken bank. Since then, through our secured lending model and digital-first strategy, we have successfully turned the bank around in record time, delivering substantial profitability and creating a strong foundation for sustainable growth.
Our ambition is clear; to build Pakistan’s leading digital-first bank under the State Bank of Pakistan’s Branchless Banking (BB) license, serving the financial needs of the masses through technology, innovation and responsible banking.
The shareholders have been unequivocal from day one that if we are to build a sustainable and scalable digital banking operation, strong capitalisation is non negotiable. Banking is fundamentally a business of trust, and trust is underpinned by capital. A strong capital base not only enables growth but also provides resilience, enhances confidence among regulators and customers, and creates the capacity to invest continuously in technology, innovation and financial inclusion.
Our strategy in the short to medium term is therefore to strengthen the bank’s capital base through multiple sources. We began this journey with significant Tier 1 capital injections by the incoming shareholders. Today, following the bank’s remarkable turnaround, sustained profitability and growing market confidence, we believe the time is right to take the next step in our journey by listing ABHI Bank on the Pakistan Stock Exchange and raising approximately PKR 2–3 billion in growth capital through an Initial Public Offering (IPO).
The proposed IPO is not merely a capital raise; it is a strategic investment in the bank’s next phase of growth. It will strengthen our balance sheet, expand our lending capacity,
accelerate our digital banking ambitions and position ABHI Bank to capture the immense opportunities emerging in Pakistan’s evolving financial services landscape.
This is a path that very few financial institutions have walked, particularly after achieving
sustainability in such a short period following an acquisition. Our decision to pursue an IPO reflects our confidence in the institution we have built, the business model we have proven, and the long-term value we believe ABHI Bank can create. It is also a testament to the trust placed in us by our valued customers, partners, regulators and shareholders, all of whom have played an integral role in our journey.
Our ambition is not simply to raise capital; it is to continuously build capital. Since the acquisition, we have complemented shareholder capital with approximately PKR 2.5 billion generated organically through profitability over just eighteen months. This speaks volumes about the strength, scalability and sustainability of our secured lending and digital-first operating model. It demonstrates that our growth is creating capital even as capital continues to fuel our growth.
We firmly believe that Pakistan is ready to embrace a new generation of challenger digital banks capable of meeting the evolving financial needs of the average Pakistani.
The proposed IPO is a key pillar of our long-term capitalisation strategy. As we continue to scale, we also intend to diversify our capital structure through Additional Tier 1 (AT1) and Tier 2 instruments, complemented by a range of credit enhancement instruments;
including first-loss guarantees, pari passu portfolio guarantees, partial credit guarantees, risk participation arrangements and blended finance structures. These instruments will strengthen our balance sheet, optimise capital efficiency and support the prudent expansion of our unsecured lending business while maintaining disciplined risk management.
Equally important is our forward-looking approach to balance sheet resilience. Through prudent provisioning under the IFRS 9 framework, we continue to build expected credit loss reserves that enhance our ability to absorb future economic shocks while reinforcing the bank’s long-term financial strength.
The proceeds from the IPO will accelerate our next phase of growth by expanding our Banking-as-a-Service platform, strengthening our digital banking rails and scaling our secured lending franchise through our omnichannel network of 114 customer touchpoints. Every rupee of capital raised will be deployed with a singular objective: building a stronger, more resilient and more scalable digital bank.
We are confident that investors will share in the long-term value ABHI Bank is creating.
More importantly, we hope this IPO sets a precedent for other emerging financial institutions, demonstrating how Pakistan’s capital markets can play a pivotal role in funding innovation, sustainable growth and the future of banking.
For us, this IPO is more than a capital raise.
It is the next chapter in building one of Pakistan’s most resilient, well-capitalised and digitally enabled financial institutions.
The journey has only just begun.
Kabeer Naqvi - The writer is an industry veteran currently serving as Entrepreneur in Residence with the Abhi Group, responsible for building its digital bank in Pakistan. He is also the former chairman of the Pakistan Microfinance Network and President & CEO of U Microfinance Bank.
This content is an advertorial by ABHI Bank and is not associated with or necessarily reflective of the views of Dawn.com or its editorial staff.
