UBL eyeing on Silkbank
merger
United Bank Limited (UBL) is looking forward to a
possible merger with Silkbank Limited and will ask the State Bank of Pakistan
(SBP) for permission to begin due diligence.
The development comes at a time when the government is
making efforts to strengthen the financial stability of the nation's banking
system in response to an International Monetary Fund (IMF) requirement.
The UBL in a statement said it is exploring a potential
merger with Silkbank Limited and is taking steps in this regard.
The potential merger would remain subject to due
diligence, internal and regulatory approvals, and definitive documents, it
added.
The announcement came after Nasser Abdulla Hussain
Lootah, an investor from the United Arab Emirates, acquired a majority stake in
Summit Bank that was having trouble raising capital as required by the SBP.
The International Commercial Bank South Sudan (ICB) announced at the beginning of this month that it had planned to invest up to €50 million ($54.5 million) in Silkbank.