In the name of ALLAH

The creator of every creation The piety The beneficent The merciful The wise The Lord of the world The first and last The sender of the Holy Prophet Muhammad may peace be upon him Whereof there is no doubt The owner of the Day of Jud ment To whom every one will be brou ht bac!

Ac!nowled ement
All glory and honor is for Allah, the Supreme Being who bestowed profound perseverance and ability on us to accomplish this work.

We express our profound and cordial gratitude to offer thanks to our learned, kind and experienced teacher, PROF.MAVRA RIAZ for his valuable guidance, constructive comments and continuous encouragement through out the research.

EDICATION

Dedicated to our Beloved and Respectable Parents and our respected teacher PROF. MAVRA RIAZ who bestowed us with the courage, the commitment and the awareness to follow the right path, by their unmatchable style and by their best possible training. Who also made us able to complete this report with confidence in every best possible way that we could have done.

EXECUTIVE SUMMARY
The First Microfinance Bank Ltd (FMFB) is the result of the transformation of the microfinance program of the Agha Khan Rural Support Program (AKRSP) !ith more than t!ent" "ears of e#perience into a separate speciali$ed microfinance %ank& 'n ())*& The First Microfinance Bank Ltd !as esta%lished as a non+listed pu%lic limited compan" under the pro,isions of the -ompanies. /rdinance in 0o,em%er 122( and licensed as a Microfinance 'nstitution (MF') under the pro,isions of the Microfinance 'nstitutions /rdinance 122( in 3anuar" 1221& FMFB formall" started operations in Fe%ruar" 1221 taking deposits through its first %ranch in 3ul" 1221 The First Microfinance Bank Ltd (FMFB) has an e4uit" %ase of 5S6 ((&* million& The main shareholders are 7 Agha Khan Rural Support Programmer (89:) the Agha Khan Agenc" for Microfinance (;2:) and the 'nternational Finance -orporation (18:)& The authori$ed capital of FMBL is Rs& ( %illion comprising (22 million shares of Rs& (2 each& As on 6ecem%er ;( 1229 the paid up capital is Rs **2 million FMFB currentl" operates 1( %ranches < %eing in the ma=or ur%an centres of Ra!alpindi Karachi Lahore >"dera%ad and ?!adar and (8 in rural 0orthern areas areas & The %ank.s principal %usiness is to pro,ide microfinance ser,ices to the poor and under ser,ed segments of the countr" as en,isaged under the Microfinance 'nstitutions /rdinance 122(& &'ts products and ser,ices includes Micro -redit Social Loan Products Start 5p Business Finance Sa,ings and 6eposits and 'nsurance &And its general %anking products includes Remittances fund transfer che4ue collection demand draft and pa" order &'t also offers %usiness de,elopment ser,ices & & 't recei,ed a rating grade of A@AA+( from 3-R+B'S -redit Rating -ompan" in April ;2 122C !hile in 122< it !as A@AA+(@&