Bank Alfalah Accepts Ghazanfar Bank Afghanistan Deal

Bank Alfalah has agreed to a preliminary offer from Afghanistan’s Ghazanfar Bank to acquire its operations in the country. The deal, subject to regulatory approvals and due diligence, would mark Bank Alfalah’s exit from Afghanistan after nearly two decades of presence.

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Bank Alfalah Limited Limited announced on Thursday that its board has accepted a non-binding proposal from Ghazanfar Bank to purchase its Afghanistan operations. In a filing to the Pakistan Stock Exchange, the bank clarified that the transaction depends on Ghazanfar Bank completing due diligence, signing binding agreements, and securing approvals from both the State Bank of Pakistan and Da Afghanistan Bank.

Ghazanfar Bank, founded in 2009 by the Ghazanfar Group, operates 15 branches across Afghanistan and provides both conventional and Islamic banking services. “Ghazanfar Bank intends to acquire Bank Alfalah’s Afghanistan business once key conditions are met,” the statement noted.
If finalized, the deal will conclude Bank Alfalah’s two-decade presence in Afghanistan, where it first entered the market in 2005 with branches in Kabul and Herat. Over the years, the bank has played a key role as a correspondent partner for Citibank NA in processing U.S. Department of Defense payments and remains the only Afghan bank with a primary relationship with Visa.

A previous attempt to divest operations in 2019 through Azizi Bank failed after regulators withheld approval. The current offer signals renewed prospects for a successful exit.