Bank Asia signs MoU to acquire Bank Alfalah

Amid talks of bank consolidation, Bank Asia is set to acquire the Bangladesh operations of Pakistan-based Bank Alfalah. To this end, Bank Asia has signed a Memorandum of Understanding (MoU) with Bank Alfalah Bangladesh.

This information came to light yesterday (29 May) through a disclosure submitted to the Dhaka Stock Exchange (DSE).

"This agreement is subject to approvals from regulatory authorities, including Bangladesh Bank and the State Bank of Pakistan, as well as the completion of necessary legal procedures and definitive agreements," read the disclosure.

Earlier, the board of directors of Bank Alfalah gave its in-principle approval for Bank Asia's proposal to acquire its operations, assets, and liabilities in Bangladesh.

Bank Asia moves to acquire Bank Alfalah's Bangladesh assets

The prominent Pakistani bank has been operating in Bangladesh since 2005 and currently maintains seven branches across Dhaka, Chattogram, and Sylhet.

The bank's Bangladesh operations have demonstrated strong financial performance, with a net profit of over Tk43 crore in 2023 and a balance sheet exceeding Tk3,100 crore.

Among private banks in Bangladesh, only Bank Asia has experience in acquiring other banks this way. This acquisition marks Bank Asia's third takeover of a foreign bank's Bangladesh operations.

Pakistan's state bank gives go-ahead for due diligence of Bank Alfalah Bangladesh to Bank Asia

Previously, in 2001, Bank Asia acquired the local operations of the Canada-based Bank of Nova Scotia and, in the same year, Pakistan's Muslim Commercial Bank.

The acquisition process will involve thorough due diligence and is expected to be completed within the year, pending all necessary regulatory approvals and compliance with legal requirements.