Pakistani Banking Sector Set for Major Shift as Silkbank Merges with United Bank

In a significant development, shareholders of Silkbank Limited have approved the proposed merger with United Bank Limited (UBL), pending regulatory approvals from the State Bank of Pakistan and the Competition Commission of Pakistan. This merger is expected to result in one of the largest banks in the country.

The merging of Silkbank Limited with United Bank Limited has been pending regulatory approvals. Park View Enclave filed a lawsuit against Shaukat Fayaz Tarin and others, challenging the proposed merger, and restraining the defendants from taking any action without court approval. However, this hasn't halted the regulator's scheme for the merger as UBL has been named as a defendant in this case. Amidst the legal proceedings, the push for the merger remains in motion.

The transaction is being carried out under a scheme sanctioned by the State Bank of Pakistan. The regulator has ever since legalized the terms and conditions in the scheme, according to the court documents. UBL's board of directors had earlier finalized the details of the Silkbank merger through a share swap arrangement.

The proposed merger between Silkbank and UBL remains a subject of dispute among various parties. The case in the Sindh High Court at Karachi will likely have a significant impact on the entire process.