Karachi: Bank Alfalah Limited has announced that Hatton National Bank (HNB) of Sri Lanka has decided not to proceed with the acquisition of Bank Alfalah's Bangladesh operations. The decision was made during a meeting of HNB's Board of Directors on April 2, 2025. This announcement follows previous disclosures made by Bank Alfalah on August 26, 2024, and November 15, 2024, regarding the non-binding offer from HNB and the subsequent in-principle approval from the central banks of Pakistan and Bangladesh for due diligence to be conducted on the Bangladesh operations.

According to information available from the Pakistan Stock Exchange (PSX), the initial offer from HNB was to acquire Bank Alfalah's operations in Bangladesh, contingent upon the completion of due diligence. The central banks had granted the necessary approvals for HNB to begin its assessment of the financial and operational metrics of the Bangladesh operations.

The decision by HNB's Board of Directors to withdraw from the acquisition process signals a change in strategy, although no specific reasons were provided by the bank. Bank Alfalah has informed TRE Certificate holders of the Pakistan Stock Exchange about this development as per regulatory requirements.

This news impacts the designated market category involving the financial transactions and operations of banks within South Asia, specifically affecting stakeholders involved in the regional banking sectors of Pakistan, Bangladesh, and Sri Lanka.