Bank Alfalah Limited (BAFL) has announced its decision to sell its operations in Bangladesh to Dhaka-based Bank Asia Limited. The bank shared the update in a filing to the Pakistan Stock Exchange (PSX) on Thursday, confirming the move is part of a strategic shift to focus more on its core markets.
The Board of Directors at BAFL has approved the sale, though it still requires regulatory clearance from the State Bank of Pakistan, the Central Bank of Bangladesh, and other relevant authorities. The transaction will proceed only after all legal and procedural requirements are fulfilled and definitive agreements are signed.
A Memorandum of Understanding (MoU) and Term Sheet between the two banks were finalized on May 28, 2025. This marks a key milestone in Bank Alfalah’s ongoing efforts to streamline its international operations and concentrate on markets where it holds a stronger presence.
Previously, BAFL attempted to sell its Bangladesh operations to Sri Lanka’s Hatton National Bank (HNB). However, in April 2025, HNB’s Board decided not to move forward, even after receiving preliminary regulatory approvals and conducting initial due diligence.
Despite earlier setbacks, Bank Alfalah remained committed to finding a buyer for its Bangladesh unit. With Bank Asia now stepping in, the sale looks more promising, provided the regulatory processes move smoothly in the coming months.
This deal, once completed, could reshape BAFL’s international strategy and help it reallocate resources to more profitable segments. Meanwhile, Bank Asia is expected to strengthen its footprint through this acquisition, adding to its existing presence in Bangladesh’s competitive banking sector.