Bank Alfalah exits Bangladesh in $47.5M deal with Bank Asia
Bank Alfalah is selling its Bangladesh operations to Bank Asia Limited for around $47.5 million. The deal follows approval from shareholders at the bank's Annual General Meeting (AGM). Regulatory bodies in both Pakistan and Bangladesh must now give final clearance before the transaction completes. The agreement sets the base price at approximately Tk 580 crore (about $47.5 million). However, the final amount may change due to standard closing adjustments. Bank Asia has already conducted an internal audit of Bank Alfalah's Bangladesh operations as part of the process.
Bank Alfalah currently operates over 1,000 branches across 200 cities in Pakistan. It also has an international presence in Afghanistan, Bangladesh, Bahrain, and the UAE. This sale marks a step in the bank's plan to exit Afghanistan as well, with approval already secured from the State Bank of Pakistan and the Central Bank of Afghanistan.
Bank Asia has a track record of acquiring local operations from foreign banks. In the past, it took over Scotiabank's and MCB's businesses in Bangladesh. The exact number of branches Bank Asia will gain from this deal remains unclear, as updated figures are not yet available. The transaction still requires approval from the State Bank of Pakistan and Bangladesh Bank. Once finalised, Bank Asia will absorb Bank Alfalah's Bangladesh operations, expanding its own network. The deal reflects Bank Alfalah's broader strategy to reduce its international footprint in certain markets.
