Pashtany Bank is a State Owned bank and is registered with the Central Bank (Da-Afghanistan Bank) under the under the commercial banking license to operate nationwide.The Bank has been operating as one of the leading commercial banking service provider in Afghanistan. The bank has twenty one branches in operation.
Pashtany Bank was established in 1333 (1954 CE) during King Mohammad Zaher Shah regime with an initial investment of AFG 120 million. Shareholders included institutions such as the Pension Fund Chairmanship, Afghanistan Agriculture Bank, and others. The bank initially employed 22 staff.
Mr. Janat Khan Gharwal was appointed as the first president. Mr. Gharwal grew the bank to 10 departments within its main office along with five local, four provincial branches, three border branches as well as three foreign branches located in Peshawar, Chaman, and Karachi cities of Pakistan.
Pashtany Bank’s history reflects the history of Afghanistan at the time, one of prosperity, decline, emerging from adversity, returning to a period promising recovery and prosperity.For its first 19 years, the bank flourished under Mr. Gharwal despite political instability beginning in 1352 (1973 CE) and world financial crisis. Mr. Sardar Mohammad Dawood Khan replaced Mr. Gharwal coincident with the king’s abdication, his replacement with a presidential political system, and economic reforms. Pashtany Bank also lost its private shareholders during this period and became solely owned by the government.
According to financial statements for the year of 1352 (1973 CE) Pashtany Bank incurred losses of AFN 21 million mostly as a result of its currency exchange operations which reflected, in turn,political instability and the world financial crisis. Nearly bankrupt, Pashtany Bank had no choice but to request rescue by Da Afghanistan Bank (DAB), the central bank. Accordingly, backed by DAB, Pashtany Bank once again became profitable according to financial statements for the years of 1352 (1973 CE) through 1357 (1978 CE).Net profit in 1354 (1975 CE) was reported as AFN 57.71 million, and in 1356 (1977 CE), the bank’s assets had increased from AFN 250 million to AFN 750 million, an increase of AFN 500 million. At the end of the same year net profit increased to nearly AFN 133 million. Pashtany Bank continued stable through 1358 (1979 CE). According to financial statements then, net profit increased to AFN 144 million, and again, in 1359 (1980 CE), when the net profit increased to AFN 359 million, and total assets increased to AFN 699.26 million. The trend continued in 1360 (1981 CE) when net profit increased to AFN 441 million.
During 1361 (1982 CE), the bank implemented a 98 percent credit plan leading to a net profit of AFN 464 million, total assets increasing to AFN 6,393 million, on total revenues of AFN 691.50 million.
As of 1369 (1990 CE), Pashtany Bank’s total assets amounted to AFN 1 billion-AFN, which doubled to AFN 2 billion the next year (1370 – 1991 CE). However, by the end of 1370 (1991 CE), the bank’s reserves had decreased to AFN 1.2 million, only to decrease to AFN 75,127,000 AFN, and this decline was because of the transferring of some amount to the asset side. The bank profit and loss statement shows 546,2.23 million-AFN as EBIT and after deduction of the total expense the EBIT amount was 2951.84 million-AFN, so the asset growth at the same year was about 23,134 Million-AFN. As previous Pashtany bank has better position in the market compare to its competitors.
Pashtany Bank’s financial decline coincided with the collapse of Dr. Najeebullah’s regime and the subsequent civil war that led to economic and social collapse. Pashtany Bank also Incurred big losses, suspending all services of the bank, with only revenue from its property holdings as income until 1380 (2001 CE).Gradually, beginning in 1381 (2002 CE) through 1388 (2009 CE) Pashtany Bank was re-capitalized, recovering its customer based, and re-introducing services. Although external pressures mounted to liquidate the bank during this period, the government considered Pashtany Bank an asset worth reviving. The bank today complies with, meets Da Afghanistan Bank (DAB), the central bank, regulations for liquidity, has installed safeguards consistent with DAB regulations, and importantly, has introduced services and standards so as to meet the demands of an increasingly competitive market for bank services.