Islamabad, Apr 5, 2025: In a recent development, Sri Lanka’s Hatton National Bank (HNB) has decided to withdraw from its proposed acquisition of Bank Alfalah Limited’s (BAFL) operations in Bangladesh.
The decision was officially communicated to the Pakistan Stock Exchange (PSX) by Bank Alfalah Limited following a resolution by HNB’s Board of Directors.
The Sri Lankan bank had initially submitted a non-binding expression of interest in 2023 to explore the possibility of acquiring Bank Alfalah’s operations in Bangladesh.
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This expression of interest had received in-principle approval from the central banks of both Pakistan and Bangladesh, clearing the way for HNB to conduct a formal due diligence process.
On November 15, 2023, both regulatory authorities formally granted permission for HNB to proceed with its assessment of Bank Alfalah’s assets and operational structure in Bangladesh.
This step marked a significant milestone in what was then seen as a potentially strategic move by HNB to expand its regional footprint.
However, in a letter addressed to the PSX, Bank Alfalah disclosed that the Chief Executive Officer of HNB had informed them that the bank’s Board of Directors decided during a meeting held on April 2, 2025 not to pursue the acquisition further.
“The CEO of HNB has informed that their Board of Directors, in a meeting held on April 2, decided not to proceed with the acquisition of Bank Alfalah’s operations in Bangladesh,” the letter stated.
Bank Alfalah Limited maintains a strong presence across Pakistan, with a network exceeding 1,024 branches in over 200 cities.
Internationally, it has operations in Bangladesh, Afghanistan, Bahrain, and the United Arab Emirates. The Bangladesh operations had formed part of its broader international banking strategy.
HNB, on the other hand, is one of Sri Lanka’s largest private-sector commercial banks, with 251 branches spread across the island nation. The proposed acquisition was seen as part of HNB’s ambition to broaden its presence in South Asia.
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While no specific reasons were cited for the decision to withdraw from the deal, such outcomes are not uncommon during post-due diligence stages when strategic alignments, financial evaluations, or regulatory conditions may lead to reconsideration.
Despite the halted acquisition, both institutions maintain strong domestic and regional footprints. The development underscores the evolving nature of cross-border banking strategies in South Asia.
Where regulatory landscapes, market dynamics, and strategic realignments continue to shape expansion efforts.
