Bank Asia Limited, a prominent private-sector commercial bank in Bangladesh, has set its sights on acquiring the operations, assets, and liabilities of Bank Alfalah Limited (BAFL) in Bangladesh.
This significant development was revealed by BAFL, one of Pakistan’s leading commercial banks, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
According to the PSX notice, the Board of Directors of Bank Alfalah Limited has given its initial approval to the non-binding indicative offer presented by Bank Asia Limited, headquartered in Dhaka, Bangladesh, to acquire BAFL operations, assets, and liabilities in Bangladesh.
However, it’s important to note that this transaction is contingent upon adhering to all relevant laws and regulations, as well as obtaining the necessary regulatory approvals. BAFL notice further states that they will now seek approval from the State Bank of Pakistan (SBP) to allow Bank Asia to initiate due diligence on Bank Alfalah’s operations in Bangladesh.
Bank Asia Limited, established in 1999, has significantly expanded its operations over the years. In 2001, it acquired the operations of Scotiabank and Muslim Commercial Bank Limited (MCB) in Bangladesh, further solidifying its presence in the country.
On the other hand, Bank Alfalah Limited is one of the largest banks in Pakistan, boasting a vast network of over 1,024 branches spanning more than 200 cities nationwide. Additionally, it has an international presence in countries such as Afghanistan, Bahrain, Bangladesh, and the UAE.
In terms of financial performance, Bank Alfalah reported impressive results in its latest financial statements. The bank recorded a consolidated profit after tax of Rs36.09 billion in 2023, marking a significant increase of over 96% compared to the previous year. Furthermore, its earnings per share (EPS) stood at Rs23.15, demonstrating substantial growth from Rs10.38 in the corresponding period last year.