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Bank Asia acquire Bank Alfalah's Bangladesh operations

Staff Correspondent
17 Apr 2024 21:22:51 | Update: 17 Apr 2024 21:22:51
Bank Asia acquire Bank Alfalah's Bangladesh operations

Bank Alfalah's Bangladesh unit will merge with Bank Asia. According to the Pakistan Stock Exchange, the Karachi-based private commercial bank disclosed the information on 17 April. 

The discloser read that the board of directors of Bank Alfalah Ltd had given approval in principle for the non-binding indicative offer received from Bank Asia Ltd to acquire the bank's Bangladesh operations. 

Assets and liabilities are subject to compliance with all applicable laws and regulations and obtaining necessary regulatory approvals, said the discloser. 

"We will now seek approval from the State Bank of Pakistan for Bank Asia to commence due diligence on Bank Alfalah, Bangladesh."

When contacted, Sohail RK Hussain, managing director of Bank Asia, told The Business Post, "Right now I can not comment about this." 

On condition of anonymity, a board of directors member of Bank Asia told The Business Post that the bank would hold a board meeting next Sunday, and at that time, the matter would be discussed. 

According to the annual report, Bank Alfalah started operations in 2005 as its first international branch in Bangladesh. It has seven branches in different locations and had 177 employees in the Bangladesh unit at the end of 2022.

According to the annual report, the bank's income was 2,576 million Pakistani rupees, and its profit was 944 million Pakistani rupees at the end of 2022.

According to the Bangladesh Bank, at the end of 2023, Bank Alfalah’s Bangladesh unit had a classified loan amount stood at Tk 30 crore, while Tk 28 crore was a bad or loss loan. 

Bank Alfalah is one of the largest banks in Pakistan, with a network of 894 branches across more than 200 cities and an international presence in the UAE, Bangladesh, Bahrain, and Afghanistan.