Silk Bank Merges into United Bank Following SBP Approval

KARACHI: The State Bank of Pakistan (SBP) has approved the integration of Silk Bank Limited (SBL) into United Bank Limited (UBL), as announced in a filing to the Pakistan Stock Exchange (PSX) on Tuesday.

UBL disclosed in a March 11, 2025, notification that the central bank granted its final approval on March 10 under Section 48 of the Banking Companies Ordinance 1962. The merger officially took effect at the start of business on March 11, 2025, following confirmation from both banks.

“With effect from the mentioned date, SBL has been merged into UBL,” the statement read.

Under the agreed terms, UBL will distribute new ordinary shares to SBL shareholders recorded as of March 20, 2025. The conversion rate has been set at one UBL share (PKR 10 per share) for every 325 SBL shares of the same value.

The Scheme of Amalgamation was approved under Section 48 of the Banking Companies Ordinance, 1962, according to an official announcement given to the Pakistan Stock Exchange (PSX). After making any required adjustments in accordance with SBP’s standards, the resolution permitted Silkbank to merge into UBL.