Bank Alfalah Bangladesh Operations to Be Sold to Bank Asia Limited

Bank Alfalah Limited (BAFL) has confirmed its decision to sell the Bank Alfalah Bangladesh operations to Bank Asia Limited, Dhaka, as per a filing submitted to the Pakistan Stock Exchange (PSX) on Thursday.

The move, approved by Bank Alfalah’s Board of Directors, is still subject to approvals from the State Bank of Pakistan (SBP), the Central Bank of Bangladesh, and other concerned regulators. The proposed sale of Bank Alfalah Bangladesh operations aligns with the bank’s strategy to consolidate its core presence and realign international operations.

A disclosure issued by BAFL stated that the transaction depends on fulfilling legal and procedural requirements and signing definitive agreements. A Memorandum of Understanding (MoU) and Term Sheet were finalized on the evening of May 28, 2025.

This latest development follows previous unsuccessful attempts to offload the Bangladesh operations. Earlier this year in April, Sri Lanka’s Hatton National Bank (HNB) decided not to move forward with acquiring Bank Alfalah’s Bangladesh unit. HNB’s Board reached this decision during a meeting on April 2, 2025, after receiving regulatory approvals and making a non-binding offer.

HNB had initially shown interest in the acquisition and obtained in-principle approval for due diligence in August and November 2024. However, the deal did not materialize.

The sale to Bank Asia Limited marks a significant shift in Bank Alfalah’s international footprint and could open new avenues for both institutions pending the successful completion of the transaction.