Silk Bank Merges into United Bank, Boosts UBL's Market Share
With the merger, UBL will gain access to Silk Bank's customer base, branch network, and financial assets, further solidifying its position in the market. The integration of Silk Bank into UBL is expected to drive economic growth and improve financial stability, with customers benefiting from UBL's comprehensive financial services and digital banking solutions.
The State Bank of Pakistan has approved the merger of Silk Bank Limited into United Bank Limited, effective from March 11, 2025, in a move expected to strengthen UBL's position as a leading financial institution in Pakistan. As part of the deal, Silk Bank shareholders will receive new shares in UBL, with a swap ratio of 1 UBL share for every 325 Silk Bank shares.
The merger is aimed at creating a stronger, more resilient financial institution capable of driving economic growth. UBL will issue 27,944,188 new ordinary shares to Silk Bank shareholders, with the book closure date for this process fixed as March 20, 2025. The integration is expected to be seamless for customers, with Silk Bank account holders now served under the UBL umbrella, gaining access to UBL's digital banking solutions and comprehensive financial services.
The amalgamation is based on a swap ratio of one new ordinary share of UBL for every 325 shares of Silk Bank, and is subject to compliance with legal and procedural requirements. UBL is one of the largest commercial banks in the country, while Silk Bank is a smaller bank that has been struggling financially. The merger is expected to strengthen UBL's market position and improve its financial stability.
The State Bank of Pakistan approved the merger under Section 48 of the Banking Companies Ordinance 1962, marking a significant consolidation in Pakistan's banking industry. The merger is expected to enhance UBL's market share and solidify its standing as one of Pakistan's largest banks, with access to Silk Bank's customer base, branch network, and financial assets.
