Bank Makramah Limited (PSX: BML) has approved a proposal for its sponsor, Nasser Abdulla Hussain Lootah, to inject Rs. 10 billion into the bank to strengthen its capital position.

The development was disclosed to the Pakistan Stock Exchange on August 18 following a meeting of the bank’s Board of Directors, which approved the sponsor’s investment proposal.

Under the arrangement, Lootah will deposit Rs. 10 billion with Bank Makramah. The amount will initially be booked as an advance against share subscription rather than immediately being treated as share capital.

The advance will remain in this form until the bank secures the necessary regulatory and corporate approvals for issuing shares to the sponsor. The proposed shares may be issued through a right issue or another legally approved mechanism.

The board has authorized Bank Makramah’s President and CEO to finalize and sign the agreement with the sponsor, including the terms governing the Rs. 10 billion investment.

The bank said the transaction remains subject to all required regulatory and corporate approvals before the amount can be converted into share capital.