Eighteen months ago, we acquired a broken bank. Since then, through our secured lending model and digital-first strategy, we have successfully turned the institution around in record time, restoring profitability and laying 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, delivering technology-enabled, responsible and inclusive financial services to millions of Pakistanis.
From the outset, our shareholders understood that building a sustainable and scalable banking institution would require strong capitalization. Banking is fundamentally built on trust, and trust is reinforced by capital. A strong capital base enables growth, strengthens resilience, enhances confidence among regulators and customers, and creates the capacity to continuously invest in technology, innovation and financial inclusion.
Our strategy in the short to medium term has therefore focused on strengthening the bank’s capital base through multiple sources. We began this journey with significant Tier 1 capital injections by our incoming shareholders. Today, following the bank’s successful turnaround, sustained profitability and growing market confidence, we believe the time is right to take the next step 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 more than a capital raise. It is an investment in the bank’s future.
The additional capital will strengthen our balance sheet, expand our lending capacity, accelerate our digital banking ambitions and position ABHI Bank to capture the opportunities emerging across Pakistan’s evolving financial services landscape.
Few financial institutions have completed such a successful turnaround in such a short period following an acquisition. Our decision to pursue an IPO reflects 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 reflection of the trust placed in us by our customers, partners, regulators and shareholders.
Our ambition is not only to raise capital but to continuously build it. Since the acquisition, we have complemented shareholder capital with approximately PKR 2.5 billion generated organically through profitability over just eighteen months. This demonstrates the strength, scalability and sustainability of our secured lending and digital-first operating model.
Pakistan is entering a new era of digital banking. We believe the country is ready for a new generation of challenger digital banks capable of providing faster, more accessible and technology-driven financial services while supporting greater financial inclusion.
The proposed IPO is a key pillar of our long-term capitalization 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, optimize capital efficiency and support the prudent expansion of our unsecured lending business while maintaining disciplined risk management.
We also remain focused on strengthening the bank’s 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 our 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 invested with a single objective: building a stronger, more resilient and more scalable digital bank.
We are confident investors will recognize the long-term value ABHI Bank is creating. More importantly, we hope this IPO demonstrates how Pakistan’s capital markets can support innovation, sustainable growth and the continued evolution of the country’s banking sector.
For us, this IPO is about much more than accessing the public markets.
It is the next step in building one of Pakistan’s most resilient, well-capitalized and digitally enabled financial institutions.
About the Author
Kabeer Naqvi 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 former President & CEO of U Microfinance Bank.
