According to some reliable sources, the government of Afghanistan has planned to sell the New Kabul Bank (NKB) at the end of June this year. Afghanistan's Central Bank, Da Afghanistan Bank (DAB) took over Kabul Bank last year when it started facing crisis because of issuing huge amounts of loans to its own shareholders. The bank eventually collapsed and DAB renamed it as New Kabul Bank under a new license. Since then, government has injected billions of Afghanis into the bank to financially stabilize it and regain the trust of the people.

At the same time, efforts are on to recoup the $900 million bad loans of the Kabul Bank. DAB said last week that the government was stepping up efforts to recoup public money lost more than a year ago in the collapse of Kabul Bank, the nation's largest private financial institution. A delegation of the government's Financial Disputes Resolution Commission is visiting Dubai in the United Arab Emirates, where many favored borrowers bought real estate with cheap loans from the bank.

The delegation is to hire a representative company there to oversee the sale of assets repossessed from borrowers, the central bank said. In addition, Pamir Airways, an airline that received millions of dollars in loans from Kabul Bank, which foundered in the fall of 2010, would be reorganized and sold off.

In the post Taliban Afghanistan, the banking sector has had a prominent growth. One bank that went winning the hearts of its customers was the Kabul Bank. It was the greatest private bank of Afghanistan that had contemporary banking system equivalent to or even better than the banks in our neighboring countries. The success of Kabul Bank was also special because this success was made possible in country with the lowest level of security – Kabul Bank established its branches in the most insecure areas of Afghanistan.

The fall of Kabul Bank seriously impacted on the credibility of other private banks. It has to be seen, whether the government can re-gain a credibility of these banks by stabilizing and selling the NKB or not and how much it becomes successful to recover the lost public money.