Following Article 98 of the Third Economic, Social and Cultural Development Plan of the Islamic Republic of Iran enacted on April 7th 2000, and the Single Article of "Permission for the Establishment of Non-Government Banks" ratified on the 10th of April 2000, a new opportunity was created for the establishment of private banks in Iran after the Islamic Revolution in 1979. Until August 2005, the Central Bank of the Islamic Republic of Iran (CBI) issued four banking licenses and four private banks came to exist on the Iranian banking market.
In 2004 the core founders of Bank Pasargad, being professionals in banking industry namely former Governor of the CBI, senior ex-Directors of state-owned banks with extensive knowledge and experience in domestic and international banking and capital market experts and professionals, decided to establish a nationwide private bank in the country's growing economy with a very young and educated work force. The core founders decided to launch the bank in two phases; first to establish a financially and professionally sound holding company and subsequently to issue an Initial Public Offering (IPO) with the above mentioned company as the major shareholder along with the core founders of the bank. To this end, the top elite private pension funds, important EPC companies, building societies and contractors, professional people namely high ranking physicians, lawyers, university professors, well known wealthy merchants and industrialists were summoned. After 12 months of extensive collaborations and thorough analysis of all prevailing issues, Pars Arian Investment Company was established as a public limited company with a paid-up capital of IRR 1,000 billion (about USD 109 million which was later increased to IRR 1800 billion, about USD 194 million) and with 400 shareholders.
Bank Pasargad, after receiving the CBI's approval on its business plan, issued its IPO on August 2nd 2005 as the fifth Iranian private bank with an intended paid up capital of IRR 2,500 billion. Due to the vast reception and acknowledgement of the public, the initial intended capital was fully subscribed in less than two hours. After consulting the CBI the decision was made to continue the offering to the close of day. At the end of the day the total number of subscribers reached over 33,000 people with a total payment of over IRR 3,500 billion. As a result of the magnificent reception of the public, Bank Pasargad had to increase the initial paid up capital of the bank to IRR 3,500 billion (USD 388 million). At present Bank Pasargad has a paid up capital of IRR 5,250 billion equal to about USD 565 million which will be increased to IRR 7000 billion (over USD 700 million) in the next months and further up to USD 3 billion in 5 years' time.
Bank Pasargad has 130 branches throughout the country. The number of branches is expected to rise to 275 by March 2009 . Bank Pasargad, as the fastest growing private bank in Iran has been well received by the Iranian business community; at the end of the first year of its full operation (March 2007) it managed to rank 86th among the top 100 Iranian corporations and is expected to move up to around 30th by March 2008.
Bank Pasargad is registered with the Companies Registry Office in Tehran dated 4th September 2005, registration number 254300. Bank Pasargad's Banking Operations License is granted by the CBI dated 13th September 2005, license number H/2849 followed by License for Trade Finance and Full International Banking Operations dated 18th March 2006, license number NAB 7280.