Bank Alfalah Limited (BAFL) has decided to sell off its businesses and operations in Afghanistan to the locally administered Azizi Bank after approval and clearance of concerned regulatory authorities of Pakistan and the neighboring country.
According to the notification sent to the Pakistan Stock Exchange (PSX), the management of Bank Alfalah has completed the business transfer agreement with Azizi Bank of Afghanistan to sell BAFL’s Afghanistan Operations.
The decision was taken on the directives of the board of directors which authorized the management to explore the possibility of selling BAF’s offshore business and assets in Afghanistan.
The management of the bank has been granted approval by State Bank of Pakistan (SBP). It is currently working on due diligence and negotiations with Azizi Bank as stated in the financial report.
Bank Alfalah is witnessing a change of business strategy especially after the new Chairman Sheikh Nahyan bin Mubarak Al Nahyan took over last year. Subsequently, it saw changes in its management including CEO, Directors and C-level executives.
Bank Alfalah Afghanistan
Bank Alfalah Limited started its operations in Afghanistan in 2005 and is providing conventional banking services in Kabul and Herat. Islamic Banking services are also provided in Kabul.
It claims to be the largest foreign bank in Afghanistan with a balance sheet value reaching 300 Million as of December 31, 2013.
The bank’s present asset value stands at AFN 16.9 billion (Afghani) while the liabilities stand at AFN 15.5 billion. The bank recorded a profit of AFN 224 million recently.
BAL Afghanistan is a mainstream partner of Citibank NA in Afghanistan for processing Department of Defense USA payments to the local market. It is the only financial institution in Afghanistan that has a primary relationship with VISA, according to its website.
BAL Afghanistan maintains a sound correspondent network across the globe comprising of Citibank (USA), Commerzbank(Germany), Habib American Bank (USA), United National Bank (UK) etc.. The said strong correspondent arrangements enable BAL Afghanistan to provide a host of services to its widespread customer base to the best of their satisfaction.