Bank Asia to acquire Bank Alfalah

Staff Reporter :
In a move to expand its footprint, Bangladeshi private-sector commercial bank Bank Asia Limited has proposed the acquisition of Bangladesh operations of multinational Bank Alfalah Limited (BAFL).

The news was disclosed by BAFL, one of Pakistan’s largest commercial banks, to the Pakistan Stock Exchange (PSX) on Wednesday.

According to a notice issued by BAFL to the PSX, the bank’s board of directors granted in-principle approval on April 17th for a non-binding indicative offer received from Bank Asia to acquire its Bangladeshi assets and liabilities.

The deal hinges on obtaining necessary regulatory approvals and complying with all applicable laws and regulations, as informed by BAFL to its shareholders.

The Karachi-based bank will now seek approval from the State Bank of Pakistan (SBP) for Bank Asia to commence due diligence on Bank Alfalah’s Bangladesh operations.

Sohail RK Hussain, managing director of Bank Asia, downplayed suggestions that the acquisition is part of a government-driven initiative to merge weak banks with stronger ones. He characterized the process as ongoing and emphasized that Bank Alfalah’s Bangladeshi unit is functioning smoothly.

A senior official from Bank Asia revealed that the bank’s board of directors will convene next Sunday and is likely to discuss the acquisition in detail.

Bank Alfalah is a multinational bank with operations in Pakistan, Afghanistan, Bangladesh, Bahrain, and the UAE. It also has a representative office in Abu Dhabi, owned and operated by the Abu Dhabi Group.

The bank commenced operations in Bangladesh in 2005 after acquiring Shamil Bank of Bahrain. Bank Alfalah Bangladesh boasts a balance sheet exceeding Tk. 3,100 crore and operates seven branches across the country, with five in Dhaka, one in Chittagong, and another in Sylhet.