 has approved the merger of Silk Bank Limited (SBL) into United Bank Limited (UBL).){kind=link}
The State Bank of Pakistan (SBP) has approved the merger of Silk Bank Limited (SBL) into United Bank Limited (UBL), starting from March 11, 2025. Both banks shared this update in separate notices to the Pakistan Stock Exchange (PSX) on Tuesday.
According to SBP’s order on March 10, 2025, Silk Bank will no longer exist as a separate bank and is now part of UBL. The merger happened under Section 48 of the Banking Companies Ordinance 1962, with approval from both banks and the SBP.
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As part of the merger, UBL will give new shares to Silk Bank’s shareholders. For every 25 shares of Silk Bank, shareholders will get 1 share of UBL. Shareholders listed by March 10, 2025, will qualify for this exchange, after completing the necessary steps.
After the announcement, Silk Bank’s stock price rose by 3.51%, reaching Rs1.18 per share by 10:24 am. On the other hand, UBL’s stock fell slightly by 0.33%, trading at Rs390.99. The market reaction was mixed as investors processed the news.
Silk Bank’s shareholders had already agreed to the merger/agreement in December 2024, but it needed final approvals from SBP and the Competition Commission of Pakistan (CCP).
This merger is expected to make UBL stronger by adding more customers and increasing its assets.
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