Mobilink Microfinance Bank Gets NOC for Digital Retail Bank License
Mobilink Microfinance Bank Limited (MMBL) has recently secured a No Objection Certificate (NOC) from the State Bank of Pakistan (SBP), a crucial step towards obtaining a Digital Retail Bank (DRB) license. Though the NOC is a significant milestone, the bank is yet to receive the formal DRB license and must fulfill remaining regulatory and capital requirements.
Understanding the Digital Retail Bank License
The Digital Retail Bank license is issued by the SBP under its digital banking framework designed to encourage branchless banking. It focuses on serving retail customers, small-to-medium enterprises (SMEs), and microfinance sectors through fully digital platforms without the need for physical branches. License holders are subject to a phased minimum capital requirement of PKR 4 billion over three years.
So far, the SBP has granted full DRB licenses to institutions such as Easypaisa Digital Bank, HugoBank, KT Bank Pakistan, Mashreq Pakistan, and Raqami Islamic Digital Bank. MMBL, which was established in 2012 and currently serves over 57 million users, is preparing to join this group once it completes the regulatory criteria.
MMBL’s Growth and Strategic Initiatives
Mobilink Microfinance Bank is majority-owned (99.99%) by VEON Microfinance Holdings B.V., with recent capital injections of $15 million in January 2025 and $20 million in January 2026 to support digital banking enhancements and the development of Islamic banking services. The bank generated PKR 78.7 billion in revenue in 2025.
MMBL has a strong presence in branchless banking via collaborations with Pakistan Mobile Communications Limited and JC Fintech, including innovative offerings such as government T-bill investments through the JazzCash app for amounts starting at PKR 5,000.
The institution is also in the process of negotiating the acquisition of Apna Microfinance Bank, aiming to consolidate its position in the financial sector. Furthermore, it launched Islamic banking operations in late 2025, opening its first Islamic branch in Karachi and planning a second in Peshawar in alignment with the country’s mandate to shift all financial institutions to interest-free banking by December 2027.
Significance for the Pakistani Financial Sector
The advancement of MMBL toward a Digital Retail Bank license reflects Pakistan’s ongoing digital transformation in finance, enabling greater inclusion of underserved populations and SMEs through cost-effective and scalable solutions. As the bank scales its Islamic and digital financial products, more consumers across the country could benefit from accessible, Sharia-compliant banking services.
MMBL’s progress is noteworthy given the broader regulatory push from SBP towards digitization and Islamic finance, signaling a critical shift in Pakistan’s banking landscape. CEO Haaris Mahmood Chaudhary emphasized the bank’s commitment to supporting small business financing, value chain finance, and digital agriculture finance, which could be significantly expanded through a full DRB license.
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