HKL graduates from MFI to commercial bank, plans expansion
HKL graduates from MFI to commercial bank, plans expansion
Nearly four years after microfinance deposit-taking institution (MDI) Hattha Kaksekar Ltd (HKL) was acquired by Bangkok-listed Bank of Ayudhya Pcl (Krungsri), it announced on Monday that it had become a commercial bank, complete with new logo design, and is gearing up to expand its business in Cambodia.
Krungsri, a member of Tokyo-listed global financial service provider Mitsubishi UFJ Financial Group Inc, completed a 100 per cent acquisition of HKL in October, 2016. It injected $45 million in additional capital into HKL in June, 2018.
HKL said the transformation is in the line with its parent company’s strategic plans to pursue regional business expansions and capture growth opportunities in CLMV (Cambodia, Laos, Myanmar and Vietnam) countries by leveraging local expertise and physical presence together with its existing established business platform and extensive networks.
Its president and CEO Hout Ieng Tong said the transformation marks a new milestone in the bank’s history and reflects its “trustworthy, transparent and right” approach to its financial service offerings and its contribution to the development of the Kingdom’s financial sector.
He said HKL “has a strong commitment with high confidence, and is well ready to serve the customers with a wide range of suitably perfect, trustworthy, convenient and simple services through our highly experienced professional staff.”
He said HKL has adopted its brand of business strategies, human resources, capital growth, banking system, risk management and business operations to become a leading commercial bank and “build a bright future” for customers.
A former food security project launched in Pursat province by OCSD/Oxfam-Quebec in 1994, HKL was registered as an NGO with the Ministry of Interior in 1996.
On April 3, 2001, it was registered with the Ministry of Commerce with a total capital of $77,850 and received a three year microfinance institution (MFI) licence. The National Bank of Cambodia in 2007 offered it a permanent MFI licence.
In 2010, it became only the second MFI to acquire an MDI licence which allows the holder to collect savings and fixed deposits.
HKL currently has $115 million in capital registered at the NBC and boasts 177 branches that offer a wide variety of financial services such as loans savings, money transfers, payroll services, mobile banking and insurance referral services.
It operates 137 ATMs nationwide, in Phnom Penh and in all 24 provinces.
