Pakistan's state bank gives go-ahead for due diligence of Bank Alfalah Bangladesh to Bank Asia

The State Bank of Pakistan has granted in-principle approval to Bank Alfalah Limited to facilitate Bank Asia Limited in conducting due diligence of operations in Bangladesh as the Pakistani entity looks to sell 100% of its assets and liabilities to the Bangladesh operations.

Bank Alfalah is one of the largest commercial banks in Pakistan. It shared the development in a statement to the Pakistan Stock Exchange (PSX) on Friday (17 May). 

The statement says, "We are pleased to inform you that the State Bank of Pakistan has granted in-principle approval to Bank Alfalah Limited (BAFL) to facilitate Bank Asia Limited (Bank Asia) in conducting the due diligence of BAFL's operations in Bangladesh, in view of the prospective sale of 100% of the assets and liabilities attributable to BAFL's Bangladesh operations to Bank Asia."

Bank Asia moves to acquire Bank Alfalah's Bangladesh assets

"The consummation of the proposed transaction is subject to detailed due diligence, execution of transaction documents and receipt of regulatory and third-party approvals and consents," it read. 

Bank Asia announced its intention to acquire Bank Alfalah's operations in Bangladesh last month. It will be Bank Asia's third acquisition of foreign bank assets in Bangladesh.