Bank Alfalah Limited has approved the divestment of its Bangladesh operations through a merger arrangement with Bank Asia Limited, in a deal valued at approximately BDT 5.8 billion (around $47.5 million).

According to an official corporate resolution, the transaction involves the transfer of Bank Alfalah’s Bangladesh business — referred to as BAFL Bangladesh Operations — into Bank Asia Limited, subject to customary closing adjustments and regulatory approvals.

The proposed sale requires clearance from both the State Bank of Pakistan and Bangladesh Bank, along with any other relevant authorities in Pakistan and Bangladesh.

Execution and Approvals

Senior executives of Bank Alfalah, including the President and CEO, Chief Financial Officer, and designated group heads, have been authorized to jointly finalize negotiations and execute all necessary agreements. Their mandate covers concluding the definitive transaction documents, agreeing on final pricing adjustments, securing regulatory permissions, and managing all legal, tax, and administrative requirements linked to the deal.

They will also oversee arrangements related to the repatriation of sale proceeds in foreign currency once the transaction is completed.

Strategic Realignment

The divestment reflects Bank Alfalah’s move to streamline its international operations and optimize capital allocation, while allowing Bank Asia Limited to integrate the acquired business into its domestic banking network.

Completion of the transaction will take place after regulatory approvals are obtained and the agreed merger scheme is formally implemented.