Khushhali Bank Limited – Investor Consortium

Institution strengthening in Pakistan through new investors with strategic experience and expertise




Consortium of five purchasers of the bank's shares, led by United Bank Limited (UBL), the second largest commercial bank in Pakistan and comprising Incofin, responsAbility, Triple Jump and Shorecap II.


Khushhali Bank (KBL) announced in 2011 a rationalisation of its ownership structure, which had been created by the Pakistan government with more than a dozen commercial banks, including United Bank Limited, owning small minority shares. The investor consortium put together by Enclude at the initiative of UBL was created to acquire a significant majority share (79% including the existing UBL stake) in the new structure.



Recognising the validity of Enclude’s advice regarding the opportunity to enter the microfinance arena alongside experienced international investors, United Bank Limited reversed its decision to sell its KBL shares and instead led a consortium to make the winning bid for the microfinance bank. Control of this bank allows UBL to deploy its branchless banking system to a larger microfinance clientele.

New investors with strategic experience and expertise have strengthened and empowered management.


Khushhali’s outreach to its target microfinance clientele has grown significantly since the transaction, due to the more active shareholder group and the consequent empowerment of management.


Demonstrated to United Bank Limited the business synergies that KBL offered to UBL’s Omni mobile money network.

Organised a consortium of specialist investors from outside of Pakistan to join United Bank Limited in acquiring a 68% stake in Khushhali Bank, costing US$26 million.


Enclude’s capacity building teams had been working with KBL in addressing the challenge of increasing savings rates. It had also been working with UBL on building its Omni branchless banking platform and rationalising the ownership structure. These projects created a thorough appreciation of the strengths of these clients and the business potential of their respective platforms. The Capital Advisory team built upon this knowledge to determine the business benefits to United Bank Limited to remain a shareholder in KBL, and to assemble a shareholder group that would position KBL for significant and sustainable growth, allowing it to extend its reach to more un(der)served households.