Bank Alfalah Moves Closer to Exiting Afghanistan

Bank Alfalah Ltd. has received initial regulatory approvals to move ahead with a potential sale of its operations in Afghanistan to Ghazanfar Bank, according to a disclosure to the Pakistan Stock Exchange.

The State Bank of Pakistan has granted “in-principle” clearance for Ghazanfar Bank to begin due diligence on Bank Alfalah’s Afghanistan business, the bank said in a letter dated Jan. 7. The central bank of Afghanistan has also allowed Ghazanfar Bank to conduct due diligence, it added.

Bank Alfalah had previously informed the exchange on Dec. 4 that it had received a non-binding offer from Ghazanfar Bank to acquire its Afghanistan operations.

The proposed transaction remains contingent on satisfactory completion of due diligence, the signing of definitive agreements, compliance with applicable laws and regulations, and receipt of all required regulatory and legal approvals from authorities in both Pakistan and Afghanistan, the bank said.