In a major move for the banking sector, the State Bank of Pakistan (SBP) has given its approval for the merger of Silk Bank Limited (SILK) with United Bank Limited (UBL). This marks a significant consolidation in the country’s banking industry.
On Tuesday, both UBL, one of Pakistan’s largest commercial banks, and SILK informed the Pakistan Stock Exchange (PSX) about this approval. According to their notifications, the SBP sanctioned the merger on March 10, 2025, under Section 48 of the Banking Companies Ordinance 1962 (BCO).
The SBP has set March 11, 2025, as the official date for the merger to take effect. From the start of business on that date, Silk Bank will be fully merged into UBL.
As part of this amalgamation, UBL will issue new shares to the shareholders of Silk Bank. Those registered as shareholders of Silk Bank by the book closure date of March 20, 2025, will receive one UBL share (with a face value of Rs10) for every 325 shares of Silk Bank they hold. This share exchange will follow all necessary legal and procedural requirements.
The merger process has been in motion for several months. In December last year, UBL’s Board of Directors approved the merger, with a share swap ratio of 1 UBL share for every 325 Silk Bank shares. As a result, UBL will issue 27,944,188 new ordinary shares.
This merger was first proposed in November 2024 when UBL submitted an offer to Silk Bank. Shortly after, Silk Bank’s Board of Directors gave their in-principle approval to move forward with the merger plan.
