ISLAMABAD: The State Bank of Pakistan (SBP) has officially sanctioned the amalgamation of Silk Bank Limited (SILK) with and into United Bank Limited (UBL), marking a significant consolidation in Pakistan’s banking sector.
UBL, one of the country’s largest commercial banks, and SILK announced the development through separate notices to the Pakistan Stock Exchange (PSX) on Tuesday (March 11, 2025).
According to the notice, SBP issued its approval on March 10, 2025, under Section 48 of the Banking Companies Ordinance 1962 (BCO). The merger will take effect from March 11, 2025, as jointly notified by UBL and SILK and approved by the SBP.
Merger Effective from March 11, 2025
“As of the Effective Date (March 11, 2025), Silk Bank stands amalgamated with and into UBL,” the notice stated.
Under the terms of the merger, UBL will issue new ordinary shares to Silk Bank shareholders based on the approved swap ratio:
- One (1) UBL ordinary share (face value Rs10) will be issued for every 325 Silk Bank ordinary shares (face value Rs10).
- The share issuance will be subject to legal and procedural compliance and will apply to Silk Bank shareholders registered as of the final book closure date (March 20, 2025).
Approval and Background
- December 2024: UBL’s Board of Directors approved the merger.
- November 2024: UBL formally submitted an offer to acquire and merge Silk Bank into UBL.
- Following this, Silk Bank’s BoD granted in-principle approval for the merger.
Under the agreed swap ratio, UBL will issue 27,944,188 new ordinary shares to Silk Bank shareholders.
This merger is expected to enhance UBL’s market position and streamline operations by integrating Silk Bank’s assets and customer base into its existing network.
