Dhaka-based Bank Asia looks to acquire Bank Alfalah Bangladesh
- In PSX notice, Bank Alfalah says it will now seek SBP approval for Bank Asia to commence due diligence on its Bangladesh entity
Bank Asia Limited, a private-sector commercial bank in Bangladesh, intends to acquire Bank Alfalah Limited (BAFL) Bangladesh’s operations along with its assets and liabilities.
BAFL, one of Pakistan’s largest commercial banks, shared this development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The Board of Directors of Bank Alfalah Limited has accorded its in-principle approval/acceptance of the non-binding indicative offer received from Bank Asia Limited, Dhaka, Bangladesh (Bank Asia) to acquire the bank’s (BAFL) Bangladesh operations/assets and liabilities,” read the PSX notice.
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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.
About the banks
Incorporated in 1999, Bank Asia expanded operations with the purchase 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 results, the bank posted a consolidated profit after tax of Rs36.09 billion during the year 2023, which is over 96% higher than its earnings in the preceding year.
The bank reported earnings per share (EPS) of Rs23.15 as compared to Rs10.38 in the same period last year.
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