Iran's Bank Mellat has reported a steep rise in the amount of letter of credit (L/C) business it has written now that many international sanctions imposed on the country have been lifted.

The bank now plans to refocus on its banking activities and divest itself of businesses acquired during the international sanctions era.

Forex growth

During the first eight months of the current Iranian financial year, Bank Mellat saw the value of its foreign exchange transactions, including L/Cs and remittances, reach US$8 billion.

This represents annual growth of 106 per cent in value and 20 per cent in volume and the bank anticipates further growth up until the end of the current Iranian financial year ending March 2018.

The bank's correspondent network has also grown by 20 per cent and the bank is now connected to 167 foreign banks.

Divestitures

As part of its plans to refocus on its banking activities and divest itself of non-core businesses, Bank Mellat is planning to sell its 20 per cent stake in Asia Insurance Company.

The bank has already divested itself of 350 surplus properties and projects in the eight months to November 2017.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.