Microfinance vs commercial banks, what do you suggest for long term hold??

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IMO,

Banks to go for: NABIL, GBIME, PCBL, PRVU, NICA, NBL, SBL, SANIMA.

Microfinance to go for: CBBL, NMFBS, FOWAD, DDBL, NUBL.

Microfinance has risky business model and they are not well established like commercial banks. But they will give more reward/returns in short period of time when it catches the trend but in current scenario if you want to enter you should think for midterm rather than short term gain.

On the other hand Commercial Banks are well established and now their job is to be profitable by doing business only. So to be safe and make strong portfolio you need to have banks investing at least 30% of your capital on banks with strong fundamentals and aggressive performance.

And for long-term hold i will buy banks any day.

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