Bank Asia to acquire Bank Alfalah Bangladesh for Tk580cr
The acquisition, equivalent to approximately $47.5 million, has already been approved by 96.5% of shareholders of Bank Alfalah.
Bank Asia PLC is set to acquire the Bangladesh operations of Bank Alfalah Limited in a deal valued at Tk580 crore, marking a significant consolidation move in the country's banking sector.
The acquisition, equivalent to approximately $47.5 million, has already been approved by 96.5% of shareholders of Bank Alfalah at its annual general meeting held on 26 March, according to disclosures published by the Pakistani lender.
The transaction now awaits approval from Bank Asia's shareholders, with the bank scheduled to hold an extraordinary general meeting on 12 April to secure the necessary consent.
The proposed deal involves the transfer of Bank Alfalah's Bangladesh operations, including its assets and liabilities, to Bank Asia through a merger, subject to regulatory approvals from both Bangladesh and Pakistan. The transaction will also require clearance from the Bangladesh Bank and the State Bank of Pakistan, along with compliance with all applicable legal frameworks.
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According to officials, the acquisition price has been determined based on a valuation conducted by PwC, with Bank Asia's management emphasising that no additional goodwill premium will be paid.
Sohail RK Hussain, managing director of Bank Asia, described the deal as strategically advantageous, noting that the valuation reflects a favourable position for the acquiring bank.
"We are acquiring the Bangladesh operations of Bank Alfalah at Tk580 crore following all regulatory requirements. The valuation is based on a detailed assessment, and we believe the deal offers a win-win outcome for our business and our shareholders," he said.
He added that the bank would proceed with further regulatory compliance steps after obtaining shareholder approval, aiming to complete the transaction in line with central bank guidelines.
Financially, the Bangladesh unit of Bank Alfalah reported total assets of Tk2,942 crore and net assets after deducting all liabilities of Tk102 crore in 2025. Deposits stood at Tk2,100 crore, while profit before tax declined sharply to Tk29 crore, down 69% from Tk93 crore in the previous year, reflecting a challenging operating environment.
The acquisition follows a structured process that began in 2024, when Bank Asia submitted a non-binding indicative offer to acquire the Bangladesh operations of Bank Alfalah. Both the State Bank of Pakistan and Bangladesh Bank subsequently granted in-principle approvals, allowing Bank Asia to conduct due diligence on the business. In 2025, Bank Alfalah's board formally approved the divestment, paving the way for the current agreement.
Bank Alfalah's Bangladesh operations, which began in 2005 after acquiring the Dhaka branch of Shamil Bank of Bahrain, currently comprise seven branches located across Dhaka, Chattogram, and Sylhet, supported by a workforce of 161 employees. Despite its modest footprint, the unit maintains a notable presence in corporate and trade finance segments.
For Bank Asia, the acquisition aligns with its growth strategy and builds on its history of acquiring foreign bank operations in Bangladesh. Established in 1999, the bank previously acquired the local operations of Nova Scotia and later took over the Bangladesh business of Muslim Commercial Bank, becoming one of the pioneers among domestic banks in such transactions.
As of September 2025, Bank Asia reported total assets exceeding Tk58,840 crore and shareholders' equity of Tk3,755 crore. The bank posted a net profit of Tk351 crore during the first nine months of 2025, demonstrating steady financial performance.
