Bank Asia has commenced the process of acquiring the Bangladesh operations of Pakistan-based Bank Alfalah.

This marks the third foreign bank acquisition by Bank Asia.

In 2001, Bank Asia acquired the Bangladesh operations of Canada-based Nova Scotia and another Pakistani bank, Muslim Commercial Bank.

The audit and valuation of Bank Alfalah’s Bangladesh operations are being conducted by PricewaterhouseCoopers (PwC) Bangladesh, a UK-based multinational tax, audit, and consulting firm. The initial acquisition cost is estimated at around Tk 600 crore, which Bank Asia will transfer to Pakistan in several tranches. Bank Asia officials expect the entire process to be completed this year.

Last month, Bank Asia and Bank Alfalah signed a memorandum of understanding regarding the acquisition.

Bank Asia managing director Sohail RK Hussain and additional managing director ANM Mahfuz were present at the signing ceremony.

According to the MoU, Bank Asia will pay the acquisition amount in multiple tranches, with part of the payment being made one year after the initial phase.