KARACHI: The State Bank of Pakistan has approved the amalgamation of Silk Bank Limited (SBL) with and into the United Bank Limited (UBL), a bourse filing said on Tuesday.

“The State Bank of Pakistan (SBP) has sanctioned the Scheme of Amalgamation of Silk Bank Limited SBL) with and into United Bank Limited (“UBL”) under the provisions of Section 48 of the Banking Companies Ordinance 1962 (“BCO”) effective from the date jointly notified by UBL and SBL and approved by the SBP,” SBL said in a notification sent to the Pakistan Stock Exchange (PSX).

Under the amalgamation scheme, shareholders of SBL who are registered as of the book closure date will receive new ordinary shares of UBL according to the following swap ratio: for every 325 ordinary shares of SBL, shareholders will receive one new ordinary share of UBL, each with a face value of Rs10. This issuance is subject to compliance with all legal and procedural requirements. The book closure date is set for March 20, 2025.

In a statement released on Tueday, UBL said, “For now, no changes will be made to the banking services of former SBL customers who will be able to conduct their banking transactions as usual from their respective branches without any interruption. However, once the full integration is complete former SBL customers will gain direct access to UBL’s extensive network of branches and ATMs alongside enhanced portfolio of products and services and advanced digital banking solutions.”