Both the State Bank of Pakistan and the Bangladesh Bank have granted in-principle approval to Bank Alfalah Limited (PSX: BAFL) for a potential exit from its operations in Bangladesh. This approval allows Bank Alfalah to facilitate Hatton National Bank PLC (HNB) of Sri Lanka in conducting due diligence on its Bangladesh operations, as part of a prospective sale of 100% of the assets and liabilities associated with these operations to HNB.

In addition to HNB’s due diligence, Bank Asia Ltd. of Bangladesh is also conducting its own assessment of Bank Alfalah’s operations in the country.

The completion of this proposed transaction is contingent upon several factors, including the thorough completion of due diligence, Bank Alfalah’s acceptance of a binding offer, the execution of transaction documents, and the receipt of necessary regulatory and third-party approvals and consents.