Bank Asia plans to acquire Bank Alfalah’s Bangladesh unit

Private commercial lender Bank Asia plans to acquire the Bangladesh-based operations of foreign lender Bank Alfalah.

Karachi-based Bank Alfalah disclosed the information to the Pakistan Stock exchange on April 17.

The disclosure said the board of directors of Bank Alfalah Ltd had given approval in-principal for the non-binding indicative offer received from Bank Asia Ltd to acquire the bank's Bangladesh operations, assets and liabilities, subject to compliance with all applicable laws, regulations and obtaining of necessary regulatory approvals.

"We will now seek approval from the State Bank of Pakistan for Bank Asia to commence due diligence on Bank Alfalah, Bangladesh," the bank said in the disclosure.

Contacted, Sohail RK Hussain, managing director of Bank Asia, told The Daily Star that it was ongoing process. "And it is not part of the current discussion of the merger of weak banks with strong banks," he said.

He added that Bank Alfalah's Bangladesh unit was operating smoothly.

Bank Asia is going to hold a meeting of its board of directors next Sunday and is likely to disclose the mater in detail, a senior official of Bank Asia said.