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Bank Alfalah Limited (PSX: BAFL) confirmed on Friday that the proposed Bank Alfalah Bangladesh acquisition by Sri Lanka’s Hatton National Bank (HNB) will no longer proceed. In a notice to the Pakistan Stock Exchange, the bank disclosed that HNB’s CEO had informed them of the decision following a board meeting held on April 2, 2025.
According to the official filing, HNB’s board resolved not to move forward with the Bank Alfalah Bangladesh acquisition. The communication marked the conclusion of a potential deal that had been in consideration since last year. Bank Alfalah had previously disclosed on August 26, 2024, that HNB had submitted a non-binding offer to acquire its Bangladesh operations. Later, on November 15, 2024, the bank revealed it had received in-principle approvals from both the State Bank of Pakistan and Bangladesh Bank, allowing due diligence to proceed.
Despite receiving regulatory green lights, the acquisition process has now come to an end. The Bank Alfalah Bangladesh acquisition would have marked a significant regional expansion for HNB, but its withdrawal signals a change in strategic direction or priorities.
With the exit of HNB from the transaction, Bank Alfalah will likely reassess its approach toward its operations in Bangladesh, which remain a part of its regional footprint. The conclusion of this deal adds a new chapter to the ongoing restructuring and consolidation trends within South Asia’s financial sector.
