Bank Asia to take over Alfalh

Bank Asia is set to take over Alfalah, a foreign bank, in a departure from Bangladesh Bank's decision that no more merger of banks will be allowed.

Bangladesh Bank has permitted Bank Asia, a private commercial of Bangladesh, to acquire foreign Bank Alfalah.

Karachi-based Bank Alfalah disclosed the information to the Pakistan Stock Exchange on April 17.

The disclosure said the board of directors of Bank Alfalah Ltd had given approval in-principal for the non-binding indicative offer received from Bank Asia Ltd to acquire the bank's Bangladesh operations, assets, and liabilities, subject to compliance with all applicable laws, regulations and obtaining of necessary regulatory approvals.

The disclosure said that the Bank Alfalah is now seeking approval from the State Bank of Pakistan for Bank Asia to commence due diligence on Bank Alfalah, Bangladesh.

Sohail RK Hussain, Managing Director of Bank Asia said this is an ongoing process and it's not part of much talk about mergers.

The issue of acquiring will get a final shape in the next week in the meeting with to executives of both the banks, sources said.