Islamabad, Mar 11, 2025: The State Bank of Pakistan (SBP) has granted formal approval for the merger of Silk Bank Limited (SBL) with United Bank Limited (UBL).
This development was officially disclosed to the Pakistan Stock Exchange on Tuesday.
In an announcement dated March 11, 2025, UBL informed the stock exchange that the SBP had issued its official Sanction Order on March 10, 2025.
The authorities granted approval under Section 48 of the Banking Companies Ordinance 1962, enabling the consolidation of the two financial institutions.
The merger became effective at the commencement of business operations on Tuesday, March 11, 2025, following a joint declaration by both banks and authorization from the regulatory body.
Silk Bank UBL Merger
“With effect from the designated date, UBL has officially merged SBL into its operations,” stated the notification.
As per the agreed terms, UBL will allocate fresh ordinary shares to SBL shareholders recorded as of the final book closure date, March 20, 2025.
UBL has established a share exchange ratio of one newly issued ordinary share (nominal value of PKR 10 per share) for every 325 ordinary shares of SBL (also valued at PKR 10 per share).
UBL expects this strategic consolidation to strengthen its market position, enhance operational efficiencies, and expand customer outreach.
Industry analysts suggest that the merger will contribute to a more robust banking infrastructure, fostering greater financial stability and growth within the sector.
Additionally, SBL shareholders will benefit from UBL’s extensive financial network and enhanced banking services, ensuring a seamless transition.
With this merger, UBL aims to expand its customer base, improve service offerings, and reinforce its financial standing in Pakistan’s competitive banking sector.
The team will carry out the integration process in accordance with regulatory guidelines, ensuring transparency and compliance with banking laws.
Stakeholders have expressed confidence in this move, expecting a positive impact on the overall banking landscape.
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The merger aligns with the broader objective of financial sector consolidation, aimed at strengthening the resilience of the banking industry in Pakistan.
As the integration progresses, both institutions have assured customers that all banking operations, including deposits and transactions, will continue without disruption.
However, this merger marks a significant milestone in Pakistan’s financial sector, reflecting the evolving dynamics of the banking industry and the commitment to sustained economic growth.
