March 11, 2025 – Karachi: The State Bank of Pakistan (SBP) has officially sanctioned the amalgamation of Silk Bank Limited (SBL) with United Bank Limited (UBL), as disclosed in a notification to the Pakistan Stock Exchange (PSX) on Tuesday.
In a formal announcement dated March 11, 2025, UBL informed the PSX that the SBP issued its Sanction Order on March 10, 2025, approving the merger under Section 48 of the Banking Companies Ordinance 1962. The merger became effective from the commencement of business on Tuesday, March 11, 2025, following a joint notification by both banks and the central bank’s approval.
“As of the Effective Date, SBL stands amalgamated with and into UBL,” the notification stated.
Merger Terms and Share Swap Ratio
Under the terms of the merger, UBL will issue new ordinary shares to SBL shareholders registered as of the final book closure date of March 20, 2025. The agreed swap ratio is set at one new ordinary share of UBL (with a face value of PKR 10 per share) for every 325 ordinary shares of SBL (also with a face value of PKR 10 per share).
The merger marks a significant development in Pakistan’s banking sector, further strengthening UBL’s position as a leading financial institution in the country. This consolidation is expected to enhance operational efficiencies and provide improved banking services to customers.
