Bank Alfalah Limited has disclosed that it has accepted a non-binding offer from Afghanistan-based Ghazanfar Bank for the acquisition of its Afghanistan operations, subject to regulatory clearances and completion of due diligence.
In a notice to the Pakistan Stock Exchange (PSX) on Thursday, Bank Alfalah said its board had approved the offer, noting that Ghazanfar Bank intends to acquire Bank Alfalah’s Afghanistan business once key conditions are met.
However, the acceptance of the offer is contingent on completion of satisfactory due diligence by Ghazanfar Bank, execution of definitive agreements, compliance with all applicable laws and obtaining all necessary regulatory approvals.
Bank Alfalah added that it will now approach the State Bank of Pakistan (SBP) and Da Afghanistan Bank to allow Ghazanfar Bank to begin its due diligence process.
Ghazanfar Bank is a licensed commercial bank in Afghanistan, established in 2009 by the Ghazanfar Group, one of the country’s major business conglomerates with interests in petroleum, gas, and multiple industrial sectors. The bank operates 15 branches across key Afghan cities and offers both conventional and Islamic banking services.
The transaction, once completed, would mark Bank Alfalah’s full exit from its long-running Afghanistan operations, subject to negotiated terms and regulatory scrutiny in both countries.
Bank Alfalah has been seeking to exit its Afghanistan operations for several years, but an earlier divestment attempt fell through when Da Afghanistan Bank rejected the acquisition proposal submitted by Azizi Bank in 2019. Both banks had reached an in-principle understanding to proceed with the transaction, but the deal could not move forward without regulatory consent.
Following the setback, Bank Alfalah signalled that it would consider alternative options, including engaging another potential buyer or continuing its Afghanistan operations for a limited period.
Bank Alfalah first entered the Afghan market in 2005 and operates branches in Kabul and Herat, offering both conventional and Islamic banking services.
The bank has served as a key correspondent partner for Citibank NA for processing US Department of Defense payments within Afghanistan and is the only financial institution with a primary relationship with VISA. Its correspondent network includes global institutions such as Citibank (US), Commerzbank (Germany), Habib American Bank (US), and United National Bank (UK).
