NBP to Shut Down More Branches in Kyrgyzstan, Azerbaijan, Kazakhstan

The National Bank of Pakistan (NBP) has announced to shut down its operations in the capitals of three Central Asian States— Bishkek (Kyrgyzstan), Baku (Azerbaijan), and Almaty (Kazakhstan) in the next few weeks, according to its annual report. The closure of the three foreign branches was a part of the strategy of the bank to shut down operations of the loss-making entities. The board continued its strategy of exiting low-yielding international markets to enhance capital efficiency, minimize compliance risks, and improve returns aligned with the board’s long‐term capital allocation strategy, the report added. The NBP established its branches in Bishkek, Baku, and Almaty in the 1990s, soon after the independence of these states, aimed at enhancing its foreign footprint of the bank and supporting Muslim countries to establish their banking operations. In 2021, the management of the bank decided to shut down seven overseas franchises and branches for the first time, but the regulatory process and approval from the banking authorities delayed the implementation of the plan. The NBP closed the NBP Paris and New York branches in 2024. The decision to close the New York Branch followed full compliance with regulatory directives, ensuring a structured exit. It is pertinent to mention here that NBP faced a penalty of $55 million by New York authorities in 2022 and $265,000 by the concerned department of Paris in 2008 for violation of regulations. The bank said in the report that it is taking a more proactive and structured approach to strengthening risk and compliance by enhancing credit management frameworks, inculcating a culture of accountability, and setting clear roles of risk‐takers and risk‐managers. NBP was operating with 21 branches with the largest foreign footprint in different foreign countries.