Karachi: Bank Alfalah Limited has announced the approval of its Board of Directors to sell its Bangladesh operations to Bank Asia Limited, based in Dhaka, Bangladesh. The decision, which was made on May 28, 2025, is contingent upon receiving necessary approvals from the State Bank of Pakistan, the Central Bank of Bangladesh, and other relevant regulatory authorities. The transaction also requires the completion of legal and procedural requirements and the execution of definitive agreements.

On the same day, an MOU/Term Sheet was executed, marking a significant step forward in the process. This move by Bank Alfalah is part of a strategic decision to divest its Bangladesh operations completely to Bank Asia Limited. According to information available from the Pakistan Stock Exchange (PSX), the sale will encompass 100 percent of the assets and liabilities associated with Bank Alfalah's operations in Bangladesh.

The State Bank of Pakistan has already granted in-principle approval to facilitate the due diligence process by Bank Asia Limited. This due diligence is a crucial step in the prospective transaction, which will be contingent upon the detailed examination of Bank Alfalah's Bangladesh operations, the execution of transactional documents, and obtaining the necessary regulatory and third-party consents.

Bank Alfalah has committed to keeping the Pakistan Stock Exchange informed of any further material developments regarding this transaction. The divestment aligns with the bank's strategic goals and is expected to impact the designated market category significantly once completed.