Islamabad: November 15, 2024
Bank Alfalah Limited (BAFL) has received in-principle approval from the State Bank of Pakistan (SBP) and the Bangladesh Bank to allow Hatton National Bank PLC (HNB) of Sri Lanka to conduct due diligence on its operations in Bangladesh. This update was announced by BAFL in a notice to the Pakistan Stock Exchange (PSX) on Friday.
The SBP and Bangladesh Bank granted approvals on November 7 and November 14, respectively, enabling BAFL to facilitate HNB’s due diligence as the Sri Lankan bank considers a potential acquisition of BAFL’s Bangladesh operations. According to BAFL, the prospective transaction could result in the sale of 100% of its Bangladesh assets and liabilities to HNB.
“This approval is in addition to the due diligence process already underway by Bank Asia Limited of Bangladesh,” stated the notice. It further clarified that the transaction’s completion is subject to comprehensive due diligence, BAFL’s acceptance of a binding offer, execution of transaction documents, and obtaining necessary regulatory and third-party approvals.
BAFL operates an extensive network of over 1,024 branches across 200 cities in Pakistan, along with an international presence in Afghanistan, Bangladesh, Bahrain, and the UAE. The bank’s expansion plans in Bangladesh come as HNB, a leading private-sector commercial bank in Sri Lanka, continues to express interest in the acquisition. HNB previously submitted a non-binding offer for BAFL’s Bangladesh assets in August. Known for its robust retail banking services, HNB has been recognized by Asian Banker Magazine as the “Best Retail Bank in Sri Lanka” ten times between 2007 and 2017.
In a related development, Bank Asia Limited also expressed interest in acquiring BAFL’s Bangladesh operations in April, marking increased regional attention on BAFL’s assets in Bangladesh.
