United Bank Limited (UBL) shareholders have approved an additional equity investment of up to Rs22 billion in Khushhali Microfinance Bank Limited (KMBL).
The investment could increase UBL’s overall shareholding in the microfinance institution. UBL disclosed the approval in a filing with the Pakistan Stock Exchange (PSX) on Tuesday.
“UBL to make further equity investment in Khushhali Microfinance Bank Limited of up to Rs22 billion, which may increase its aggregate shareholding in KMBL accordingly,” the bank said in its notice.
UBL to Participate in KMBL Rights Issue
UBL plans to make the investment by subscribing to its proportionate entitlement in KMBL’s further issue of ordinary shares.
KMBL will offer the new shares to existing shareholders through a rights issue. Under the proposed arrangement, shareholders will receive approximately 51.166 new ordinary shares for every existing share they hold.
Each new share will have a face value of Rs10. However, the subscription price will stand at Rs2 per share.
This represents an Rs8 discount against the shares’ face value. KMBL will provide the final terms through its formal rights offer documentation.
UBL may also acquire additional KMBL shares through one or more transactions or arrangements.
Investment Could Increase UBL’s KMBL Stake
The approved investment could result in a higher aggregate shareholding for UBL in KMBL.
The bank’s participation comes as KMBL seeks to strengthen its financial position. UBL had already approved the proposed investment through its board last month.
At that time, UBL said it would invest up to Rs22 billion through the rights issue and additional share acquisitions. The investment could also include shares acquired under UBL’s underwriting commitments.
KMBL Focuses on Financial Inclusion
Khushhali Microfinance Bank has played a significant role in Pakistan’s microfinance sector.
Established in August 2000, KMBL describes itself as Pakistan’s first microfinance institution. The bank focuses on improving financial access for low-income individuals, households and entrepreneurs.
Its broader objective involves supporting financial inclusion and economic empowerment across Pakistan.
The institution aims to contribute to socio-economic growth by providing financial services to underserved communities.
UBL Aims to Strengthen KMBL Finances
UBL previously highlighted KMBL’s financial challenges when announcing the proposed investment.
“KMBL had negative equity of Rs16.15 billion as of December 31, 2025. UBL’s investment would help strengthen the financials of KMBL and help in the stability of the financial markets of Pakistan,” UBL said.
The latest shareholder approval now clears another step for the proposed investment.
The additional capital could help improve KMBL’s financial position and support its operations in Pakistan’s microfinance market. Moreover, a stronger balance sheet could help the institution expand financial services among underserved customers.
UBL’s investment also signals continued support for KMBL as it works to address its financial position and strengthen its role in promoting financial inclusion.
