Sri Lanka's Hatton National Bank PLC (HNB) has submitted a non-binding offer to acquire the Bangladesh operations of Bank Alfalah Limited (PSX: BAFL). This move places HNB in direct competition with Bangladesh’s own Bank Asia Ltd., which has also submitted a non-binding offer for the same assets.

The Board of Directors of Bank Alfalah has given its in-principle approval to HNB's offer, indicating the potential for a significant regional acquisition by the Sri Lankan bank. However, the deal remains subject to the approval of relevant regulatory authorities and compliance with all applicable laws.

In a statement released Monday (26), Bank Alfalah announced, "We will now seek approvals from the central banks of Pakistan and Bangladesh for HNB to commence due diligence on Bank Alfalah's Bangladesh Operations."

Bank Alfalah, a well-established multinational bank, operates across several countries, including Pakistan, Afghanistan, Bahrain, the UAE, and Bangladesh. The proposed acquisition is seen as a strategic move by HNB to strengthen its presence in the South Asian region.