Bank Alfalah Approves Sale of Bangladesh Operations to Bank Asia Limited
In a strategic move marking a realignment of its international footprint, Bank Alfalah Limited (BAFL)—one of Pakistan’s largest commercial banks—has announced the sale of its Bangladesh operations to Bank Asia Limited, a private-sector commercial bank based in Dhaka. The decision was approved by BAFL’s Board of Directors and disclosed in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“We are pleased to inform you that the Board of Directors of Bank Alfalah Limited has accorded its approval to sell the bank’s Bangladesh operations to Bank Asia Limited, Dhaka, Bangladesh,” the statement read.
Regulatory Approvals and Transaction Timeline
The transaction is not yet finalized, pending approval from the State Bank of Pakistan (SBP), the Central Bank of Bangladesh, and other relevant regulatory bodies. Additionally, it is contingent on the completion of all legal and procedural formalities and the execution of definitive agreements.
A Memorandum of Understanding (MoU) between the two banks was signed on May 28, 2025, signaling the formal start of the divestment process.
About Bank Asia Limited
Founded in 1999, Bank Asia is a prominent private-sector bank in Bangladesh. It has a history of strategic acquisitions, including the purchase of:
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The Bank of Nova Scotia’s Bangladesh operations (entered Bangladesh in 1999)
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Branches of Muslim Commercial Bank Limited (MCB) in Bangladesh
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The full operations of Scotiabank Bangladesh in 2001
With a strong domestic presence, Bank Asia is focused on expanding its footprint within Bangladesh through both organic growth and strategic consolidation.
Bank Alfalah: Refocusing Its Regional Strategy
Bank Alfalah, which operates a vast domestic network of 1,024 branches across over 200 cities in Pakistan, also maintains international operations in Afghanistan, Bahrain, Bangladesh, and the UAE.
By divesting its Bangladesh operations, BAFL appears to be streamlining its international portfolio—possibly to consolidate resources, enhance returns in core markets, or navigate regulatory complexities in South Asia.
Financial Position of BAFL
Bank Alfalah remains financially robust. For the quarter ending March 31, 2025, the bank reported:
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Profit After Tax (PAT) of Rs7.04 billion
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Earnings Per Share (EPS) of Rs4.46
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Interim Cash Dividend of Rs2.5 per share (25%)
This performance underlines the bank’s strong fundamentals, even as it undertakes structural changes in its regional operations.
Strategic Implications
This sale marks a notable development in cross-border banking in South Asia. Key implications include:
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For BAFL: Focused capital deployment, reduced operational overhead in foreign markets, and potentially enhanced shareholder value.
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For Bank Asia: Expanded customer base and geographical reach within Bangladesh’s banking ecosystem.
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For Regulators: Reinforcement of regulatory scrutiny in cross-border M&A within the banking sector.
If approved, the deal could serve as a template for similar strategic realignments among other Pakistani and Bangladeshi financial institutions.
6. Focus Keyword:
Bank Alfalah Bangladesh Sale
7. Short Description:
Bank Alfalah Limited has approved the sale of its Bangladesh operations to Bank Asia Limited. The move reflects BAFL’s strategic intent to streamline its international presence. The transaction awaits regulatory approvals from the SBP and Bangladesh’s central bank.
