Karachi, March 11, 2025 – The State Bank of Pakistan (SBP) has officially approved the merger of Silk Bank Limited (SBL) with United Bank Limited (UBL), marking a significant milestone in the country’s banking sector. The approval was disclosed in a notification submitted to the Pakistan Stock Exchange (PSX) on Tuesday.
According to the official statement, the SBP issued its Sanction Order on March 10, 2025, under Section 48 of the Banking Companies Ordinance 1962, allowing the two financial institutions to merge. Following the approval, the merger became effective from the beginning of business hours on March 11, 2025.
Silk Bank Officially Merges into United Bank Limited
With the completion of this strategic merger, Silk Bank Limited (SBL) has been fully integrated into United Bank Limited (UBL). The announcement marks a major consolidation in Pakistan’s banking industry, strengthening UBL’s position as a leading financial institution in the country.
Also Read: How Lakeshore City is Revolutionizing Resort Living in Pakistan
“As of the Effective Date, SBL stands amalgamated with and into UBL,” the official notification confirmed.
What the Merger Means for Shareholders?
The merger deal includes a share swap agreement, ensuring Silk Bank shareholders receive new shares in UBL. As per the terms:
- Silk Bank shareholders registered as of March 20, 2025, will be eligible for UBL shares.
- The swap ratio is set at 1 UBL share (face value: PKR 10) for every 325 Silk Bank shares (face value: PKR 10).
This means Silk Bank investors will now become shareholders in United Bank Limited, benefiting from UBL’s strong financial position and market dominance.
Impact on Pakistan’s Banking Industry
This merger is expected to enhance UBL’s market share and solidify its standing as one of Pakistan’s largest banks. The consolidation comes as part of ongoing reforms in the financial sector, aimed at strengthening institutions, improving financial stability, and enhancing banking services for customers.
With this acquisition, UBL gains access to Silk Bank’s customer base, branch network, and financial assets, further expanding its footprint across Pakistan. The move aligns with the central bank’s vision to create stronger, more resilient financial institutions capable of driving economic growth.
What’s Next for UBL and Its Customers?
For customers, the transition is expected to be seamless. Silk Bank account holders will now be served under the UBL umbrella, gaining access to UBL’s digital banking solutions, expanded ATM network, and comprehensive financial services.
UBL is likely to announce further details regarding the integration process, customer service enhancements, and operational changes in the coming weeks.
Final Thoughts
The Silk Bank-UBL merger represents a transformative shift in Pakistan’s banking sector, reinforcing the trend of consolidation among financial institutions. With SBP’s approval and the successful completion of this deal, United Bank Limited is set to further strengthen its position as a key player in the country’s financial ecosystem.
You May Also Like:
Shahid Afridi Believes This Player Should be Pakistan Captain
