Islamabad, 29 May 2025: Bank Alfalah Selling one of its overseas branches marks a new phase in the bank’s regional strategy.
In a major development, Bank Alfalah Limited (PSX: BAFL) has confirmed that its Board of Directors has approved the decision to divest its operations in Bangladesh.
The deal involves the sale of its Bangladesh-based business to Bank Asia Limited, a financial institution headquartered in Dhaka. The move reflects Bank Alfalah’s broader efforts to streamline its international footprint.
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Approval Awaits from Regulators in Both Countries
The proposed transaction will only be finalized once it secures the necessary green light from regulatory authorities.
This includes approvals from both the State Bank of Pakistan and the Bangladesh Bank, in addition to meeting other legal and procedural standards.
As part of the process, Bank Alfalah disclosed that a Memorandum of Understanding (MoU) or alternatively, a Term Sheet was signed in the evening hours of May 28, 2025. However, the finer details of the agreement, including financial terms, have yet to be made public.
Strategic Shift Amid Changing Market Conditions
This move signals a strategic pivot for the bank, which operates under the framework of the Banking Companies Ordinance, 1962.
Industry watchers suggest that the decision to exit Bangladesh could be driven by the bank’s ambition to refocus on core markets and redeploy resources for greater domestic growth or alternative regional investments.
Bank Alfalah Selling assets in Bangladesh is seen as part of a larger trend among South Asian banks optimizing international operations to adapt to regulatory shifts and economic challenges.
Next Steps to Follow Signing of Final Agreements
Officials from the bank have indicated that further updates will be shared once formal sale agreements are signed. Until then, the bank remains engaged in fulfilling all the legal and technical requirements necessary to complete the transfer smoothly.
READ MORE: SBP Allows Bank Alfalah To Conduct Due Diligence For Samba Bank
While stakeholders await final confirmation, the bank’s management has reiterated its commitment to maintaining transparency throughout the process.
Bank Alfalah Selling its Bangladesh business is likely to attract attention across financial circles, with market analysts watching closely to assess its impact on both institutions involved.
