The State Bank of Pakistan (SBP) has officially sanctioned the amalgamation of Silk Bank Limited (SBL) with United Bank Limited (UBL), according to a disclosure made to the Pakistan Stock Exchange on Tuesday.

In a notification dated March 11, 2025, UBL informed the stock exchange that the SBP issued its Sanction Order on March 10, 2025, approving the merger under Section 48 of the Banking Companies Ordinance 1962. The merger became effective from the start of business on Tuesday, March 11, 2025, following joint notification by both banks and approval from the central bank.

“As of the Effective Date, SBL stands amalgamated with and into UBL,” stated the notification.

According to the merger terms, UBL will issue new ordinary shares to SBL shareholders registered as of the final book closure date of March 20, 2025. The swap ratio has been set at one new ordinary share of UBL (with a face value of PKR 10 per share) for every 325 ordinary shares of SBL (also with a face value of PKR 10 per share).