Karafarin Bank was initially established as Karafarinan Credit Institute. It is the first truly privately-owned bank in Iran established since the 1979 Revolution. Its shareholders are among the leading industrialists and contractors in Iran. Many of them are members of the Association of Industrial Managers of Iran, Association of Construction Engineers of Iran, Association of Utility Engineers, and Consulting Engineers and Architects.

    Many of Karafarin’s shareholders have a long history of contributing to the Iranian economy, its development and growth and creating employment opportunities, and that is where the name comes from (Karafarin in Persian means creator of jobs). With an initial capital of 30 Billion Rials, the Credit Institute received its operating permit from the Central Bank of Iran on December 1, 1999. About 85% of the capital was contributed by the founding shareholders and the balance was offered to the general public, which was taken up within days.

    The Institution was incorporated on 18/9/1378 (December 9, 1999) under registration number 157915. Pursuant to the approval by the Extra-ordinary General Assembly of the Shareholders dated 26/11/1379 (February 15, 2000), and the preliminary agreement of the Supervision Department of the Central Bank on 31/6/1380 (September 22, 2001), the process of converting the Credit Institute into a bank began. New articles of association was adopted; the paid-up capital was increased in two stages to 200 Billion Rials (just over $25 million); and, shares of those shareholders who did not take advantage of their primitive rights (with respect to the capital increase) were sold to new shareholders.
    The Institution was officially converted into a bank on 11/10/80 (January 1, 2001). As the first privately-owned bank in operation, we intend to contribute towards advancement of banking industry in Iran. However, as a newcomer it would be difficult to compete with very large state-owned banks with their extensive branch network. Therefore, we have defined clear target customers and clients for ourselves, and expect to use automation in providing services to our customers. We have been fortunate to benefit from the experience of a few senior managers, along with a group of young talented and trained personnel. Karafarin Bank is ready to offer competitive and innovative services to our local, regional and international customers.