PTCL Group refutes speculations on UBank's financial health.

Karachi -- In a press release issued on October 23, the PTCL Group vehemently dismissed all allegations and speculations surrounding the financial well-being of its wholly-owned subsidiary, U Microfinance Bank (Ubank). The leading ICT services provider in Pakistan reiterated that Ubank possessed a robust and resilient capital base.

This development unfolded in response to the viral online conjectures about the financial stability of both UBank and UPaisa, with claims of their capital reserves teetering into the negative. Social media rumours exacerbated the situation, prompting depositors to withdraw their funds.

The genesis of these speculations can be traced back to the abrupt departure of Kabeer Naqvi, the former President and CEO of UBank, on October 18. Shortly thereafter, on October 19, Essa Al Taheri was announced as the acting President and CEO of UBank. Al Taheri has been associated with Ubank as a member of the board of directors.

In light of the ongoing developments, UBank and PTCL group addressed the ongoing speculations. Al Taheri stated, 'We want to address recent rumours circulating on various platforms, regarding UPaisa and U Microfinance Bank's capital base. These claims are entirely baseless and unfounded. Ubank has a strong and committed management team and enjoys complete support from its investors, partners, stakeholders and customers as the bank continues to strive for growth and excellence.'

Similarly, PTCL Group stated that the teams at Ubank would continue to make progress, innovate, and endeavor to achieve the bank's core mission of financial inclusion for all segments of Pakistani society.

Hatem Bamatraf, the president and CEO of and chairman of the board of directors at U Microfinance Bank, said, 'Ubank has always enjoyed strong backing from PTCL Group. The bank has demonstrated impressive financial performance and positive growth trajectory; therefore, I would like to reiterate that PTCL Group firmly stands with the bank and reassures the investors, customers and shareholders of its continued...