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United Bank Limited (UBL) has successfully completed the allocation of shares to former Silkbank Limited shareholders, following the recent merger sanctioned by the State Bank of Pakistan (SBP). This strategic move marks a significant consolidation in Pakistan’s banking sector.
The SBP approved the amalgamation of Silkbank into UBL on March 10, 2025, under Section 48 of the Banking Companies Ordinance, 1962. The merger became effective at the start of business on March 11, 2025, officially integrating Silkbank’s operations and assets into UBL.
As part of the merger agreement, UBL issued new ordinary shares to eligible Silkbank shareholders based on a swap ratio of one UBL share for every 325 Silkbank shares held. This arrangement led to the issuance of approximately 27.94 million new UBL shares. Shareholders registered as of the close of business on March 20, 2025, were eligible for this share exchange.
Impact on Former Silkbank Customers
For the time being, former Silkbank customers will experience no immediate changes to their banking services. They can continue conducting transactions as usual at their respective branches without interruption. UBL has assured that any future changes will be communicated promptly to ensure a smooth transition for all clients.
This merger underscores UBL’s commitment to strengthening its market position and expanding its customer base in Pakistan. By integrating Silkbank’s operations, UBL aims to enhance its service offerings and operational efficiency, contributing positively to the country’s banking landscape.
The successful completion of this merger and share allocation process reflects the effective collaboration between regulatory authorities and financial institutions in Pakistan, fostering a more robust and resilient banking sector.
