Bank Asia PLC is set to acquire the Bangladesh operations of Bank Alfalah Limited in a deal valued at Tk580 crore, marking a major consolidation move in the country’s banking sector.
The acquisition, equivalent to roughly $47.5 million, has already received approval from 96.5 per cent of Bank Alfalah shareholders at its annual general meeting held on 26 March, according to the Pakistani bank’s disclosures.
The transaction now awaits the consent of Bank Asia’s shareholders, who are scheduled to vote at an extraordinary general meeting on 12 April.
Under the proposed agreement, Bank Alfalah’s Bangladesh operations - including all assets and liabilities - will be merged into Bank Asia, subject to regulatory approvals from both Bangladesh and Pakistan. The deal also requires clearance from Bangladesh Bank and the State Bank of Pakistan, along with compliance with relevant legal frameworks.
The acquisition price was determined through a valuation conducted by PwC, and Bank Asia has confirmed that no additional goodwill premium will be paid.
Sohail RK Hussain, managing director of Bank Asia, described the deal as strategically beneficial, stating that the valuation represents a favourable opportunity for the bank.
“We are acquiring Bank Alfalah’s Bangladesh operations in full compliance with regulatory requirements. The assessment confirms a win-win outcome for our business and shareholders,” he said.
The Bangladesh unit of Bank Alfalah reported total assets of Tk2,942 crore and net assets of Tk102 crore in 2025. Deposits stood at Tk2,100 crore, while profit before tax fell sharply to Tk29 crore, down 69 per cent from Tk93 crore the previous year, reflecting a challenging business environment.
The acquisition process began in 2024 when Bank Asia submitted a non-binding offer to acquire Bank Alfalah’s Bangladesh operations. In-principal approvals from both central banks allowed Bank Asia to conduct due diligence, and Bank Alfalah’s board formally approved the divestment in 2025.
Bank Alfalah’s Bangladesh operations, which started in 2005 after acquiring the Dhaka branch of Shamil Bank of Bahrain, include seven branches across Dhaka, Chattogram and Sylhet, with a staff of 161 employees. Despite its small size, the bank maintains a significant presence in corporate and trade finance.
For Bank Asia, the acquisition aligns with its long-term growth strategy and builds on its experience in acquiring foreign bank operations in Bangladesh.
Since its establishment in 1999, Bank Asia has acquired the local operations of Nova Scotia and Muslim Commercial Bank, becoming one of the first domestic banks to undertake such expansions.
As of September 2025, Bank Asia reported total assets of over Tk58,840 crore and shareholders’ equity of Tk3,755 crore, with a net profit of Tk351 crore in the first nine months, reflecting strong and steady financial performance.
