The shareholders of Bank Alfalah Limited (BAFL), one of Pakistan’s largest commercial banks, have formally approved the sale of its Bangladesh operations to Bank Asia Limited, a private sector commercial bank headquartered in Dhaka, for approximately $47.5 million.
The decision was passed at the bank’s 78th Annual General Meeting (AGM), the minutes of which were subsequently submitted to the Pakistan Stock Exchange (PSX). Under the resolution, Bank Alfalah Limited is authorised to divest its Bangladesh operations to Bank Asia Limited for a base consideration of BDT 5,800,000,000, equivalent to approximately $47.50 million.
The transaction, structured as a merger of Bank Alfalah’s Bangladesh operations into Bank Asia Limited, is subject to closing adjustments as per agreed terms. The deal will proceed in accordance with applicable laws and regulations and remains contingent on approvals from the State Bank of Pakistan, Bangladesh Bank, and other relevant regulatory authorities in both countries.
About the institutions
Bank Asia, incorporated in 1999, has grown steadily through strategic acquisitions. The bank expanded its footprint by purchasing the Bangladesh branches of the Bank of Nova Scotia and the local operations of Muslim Commercial Bank Limited. In 2001, it acquired the operations of Scotiabank, which had entered Bangladesh in 1999.
Bank Alfalah, meanwhile, is among Pakistan’s foremost commercial banks, operating a network of over 1,024 branches across more than 200 cities in Pakistan. Beyond its domestic presence, the bank maintains an international footprint in Afghanistan, Bangladesh, Bahrain, and the UAE.
Part of a broader divestment strategy
The Bangladesh sale is not an isolated move. Earlier this year, Bank Alfalah took concrete steps towards divesting its Afghanistan operations as well. Both the State Bank of Pakistan and the Central Bank of Afghanistan granted regulatory approvals, enabling Ghazanfar Bank to commence due diligence on that transaction.
The proposed sale to Bank Asia marks a significant step in Bank Alfalah’s strategic realignment, consolidating its international operations while enabling Bank Asia to further deepen its domestic presence through a merger of established banking assets.
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