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Bank Asia, a private commercial lender in the country, is set to acquire the Bangladesh operations of Pakistan's leading lender Bank Alfalah, according to Pakistani media reports.
The Pakistani media outlets disclosed the development, citing information that the Pakistani bank shared through a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The Board of Directors of Bank Alfalah Limited (BAFL) has accorded its in-principle approval of the non-binding indicative offer received from Bank Asia Limited, Dhaka, Bangladesh to acquire the bank’s Bangladesh operations/assets and liabilities,” Bank Alfalah’s notice said.
As per BAFL’s notice, the transaction is subject to compliance with all applicable laws/regulations and obtaining necessary/regulatory approvals.
“We will now seek approval from the State Bank of Pakistan (SBP) for Bank Asia to commence due diligence on Bank Alfalah, Bangladesh,” read the notice.
Incorporated in 1999, Bank Asia expanded operations with the acquisition of Bank of Nova Scotia branches and Muslim Commercial Bank Limited’s (MCB) Bangladesh operations. In 2001, it purchased the operations of Scotiabank which entered Bangladesh in 1999.
BAFL is one of the largest banks in Pakistan, with a network of over 1,024 branches across more than 200 cities in the country, and an international presence in Afghanistan, Bangladesh, Bahrain, and the UAE.
As per Bank Alfalah’s latest financial reports, the bank posted a consolidated profit after tax of Rs 36.09 billion during the year 2023, which is over 96 per cent higher than its earnings in the preceding year.