Bank Alfalah has received a non-binding offer from Hatton National Bank (HNB) of Sri Lanka to acquire its Bangladesh operations, in addition to a similar offer from Bank Asia. Bank Alfalah will seek approvals from the central banks of Pakistan and Bangladesh for HNB to begin due diligence. The bank’s Bangladesh operations include seven branches with a balance sheet exceeding Tk3,100 crore and an operating profit of over Tk68 crore in 2023. After provisions and taxes, the net profit was over Tk43 crore. Bank Alfalah’s shareholders’ equity stood at over Tk618 crore by December 2023. Bank Asia, which acquired the Bangladesh operations of Nova Scotia and Muslim Commercial Bank, is continuing discussions with Bank Alfalah and has received Bangladesh Bank approval for a merger. Bank Asia has assets over Tk47,780 crore and shareholders’ equity of Tk3,061 crore as of September 2023. It posted a net profit of Tk382 crore for the first nine months of 2023. The acquisition and potential merger are subject to regulatory approvals and due diligence.
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