In a significant move poised to reshape the private banking landscape in Bangladesh, Bank Asia Limited has formally convened an Extraordinary General Meeting (EGM) to seek shareholder approval for the acquisition of Bank Alfalah’s Bangladesh operations. This strategic maneuver, announced via the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) on Sunday, marks a definitive step towards consolidating Bank Asia’s market position, particularly within the Islamic finance sector.
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Strategic Objectives and Timeline
The decision follows a board meeting held on 29 January, where directors greenlit a special resolution to acquire the assets and liabilities of the Pakistan-based lender. To legalise this transition, the 13th EGM is scheduled for 12 April at 11:00 AM, conducted via a digital platform. The bank has designated 26 February as the “record date,” determining which shareholders are eligible to participate and vote on this landmark proposal.
According to senior officials, the primary driver behind this acquisition is the aggressive expansion of Bank Asia’s Islamic banking window. By integrating Bank Alfalah’s existing infrastructure and Shariah-compliant portfolio, Bank Asia aims to establish itself as a dominant leader among conventional banks offering Islamic financial services.
Financial Valuation and Due Diligence
The groundwork for this deal was laid on 28 May last year with the signing of a Memorandum of Understanding (MoU). To ensure a transparent valuation, a consortium of auditors—led by the UK-based multinational firm PricewaterhouseCoopers (PwC) Bangladesh—is currently conducting a thorough audit of Bank Alfalah’s local books. Preliminary estimates suggest the acquisition cost will hover around 600 million BDT (60 crore BDT).
A History of Strategic Acquisitions
Bank Asia is no stranger to the complexities of absorbing foreign entities. Since its inception in 1999, this acquisition marks the third time the bank has bolstered its growth by taking over the local operations of international lenders.
| Year | Entity Acquired | Origin | Status |
| Early 2000s | Bank of Nova Scotia | Canada | Successfully Integrated |
| 2000s | Muslim Commercial Bank (MCB) | Pakistan | Successfully Integrated |
| 2024/25 | Bank Alfalah | Pakistan | In Progress |
Market Context
It is worth noting that Bank Alfalah’s Bangladesh branches were previously a target for Sri Lanka’s Hatton National Bank (HNB). While HNB received initial clearance from both the Pakistani and Bangladeshi central banks to conduct due diligence, they ultimately withdrew from the process, leaving the door open for Bank Asia to step in and secure the deal.