The central banks of Pakistan and Bangladesh have granted in-principle approval to Bank Alfalah Limited (BAFL) to facilitate Hatton National Bank PLC (HNB) of Sri Lanka in conducting the due diligence of BAFL’s operations in Bangladesh.

The development was shared by BAFL in a notice to the Pakistan Stock Exchange (PSX) on Friday.

“Both the State Bank of Pakistan (SBP) and the Bangladesh Bank have, on November 07th, 2024 and November 14th, 2024 respectively, granted in-principle approval to BAFL to facilitate Hatton National Bank PLC (HNB) of Sri Lanka 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 HNB,” read the notice.

BAFL informed that this approval is in addition to the due diligence process already underway by Bank Asia Ltd of Bangladesh.

“The consummation of the proposed transaction is subject to detailed due diligence, acceptance by BAFL of a binding offer and execution of transaction documents and receipt of regulatory and third- party approvals and consents,” added the notice.

BAFL has a network of over 1,024 branches across more than 200 cities in the country, and an international presence in Afghanistan, Bangladesh, Bahrain, and the UAE.

Earlier in August, HNB made a non-binding offer to acquire BAFL’s Bangladesh operations along with its assets and liabilities.

HNB is a premier private sector commercial bank operating in Sri Lanka with 251 branches spread across the island. The bank has been internationally recognised by the Asian Banker Magazine as the “Best Retail Bank in Sri Lanka” on ten occasions from 2007 to 2017.

Meanwhile, in April, Bank Asia Limited of Bangladesh also expressed to acquire BAFL Bangladesh’s operations.