Silkbank

Last updated
Silkbank Limited
FormerlyPrudential Commercial Bank (1994–2001)
Saudi-Pak Commercial Bank (2001–2008)
Company type Public
PSX:  SILK
Industry Banking
FoundedJune 1994;30 years ago (1994-06)
Defunct2025
FateMerged into United Bank Limited (2025)
Successor United Bank Limited
Headquarters Karachi-75600, Pakistan
Key people
Shahram Raza Bakhtiari (CEO)
Products
RevenueDecrease2.svgRs. 8.283 billion (US$29 million) (2023)
Decrease2.svgRs. 20.655 billion (US$72 million) (2023)
Decrease2.svgRs. 12.786 billion (US$44 million) (2023)
Total assets Decrease2.svgRs. 292.070 billion (US$1.0 billion) (2023)
Total equity Decrease2.svgRs. 26.352 billion (US$91 million) (2023)
Owner
Website silkbank.com.pk
Footnotes /references
Financials as of 31 December 2023 [1]

Silkbank Limited was a Pakistani commercial bank headquartered in Karachi. Founded in 1994 as Prudential Commercial Bank, it was later renamed Saudi Pak Commercial Bank before becoming Silkbank in 2008. It was the smallest bank in Pakistan. [2]

In 2024, the State Bank of Pakistan approved Silkbank’s merger with United Bank Limited (UBL). The process was finalized in March 2025, with Silkbank officially integrating into UBL through a share swap agreement. [3]

History

Silkbank was founded in 1994 as Prudential Commercial Bank. [4] It began commercial operations on May 7, 1995. [4] It was subsequently listed on the Karachi Stock Exchange. [5]

In September 2001, Saudi Pak Industrial and Agricultural Investment Company acquired Prudential Commercial Bank and renamed it as Saudi Pak Commercial Bank. [6] [4]

In March 2008, a consortium comprising International Finance Corporation, Bank of Muscat, Nomura, and Sinthos Capital, led by Pakistani banker Shaukat Tarin, acquired a majority stake in Saudi Pak Bank for $213 million. [7] [8] In June 2008, the bank changed its name to Silk Bank Limited. [7]

In 2015, Arif Habib Corporation acquired a 28.23 percent stake in the bank. [9]

In March 2024, Silkbank Limited announced its merger with United Bank Limited (UBL) after both banks reached an agreement. On March 10, 2025, the State Bank of Pakistan (SBP) officially sanctioned the amalgamation of Silkbank with UBL under Section 48 of the Banking Companies Ordinance 1962. The merger became effective on March 11, 2025, fully integrating Silkbank's operations into UBL. As part of the agreement, UBL issued new shares to Silkbank shareholders at a swap ratio of 1 UBL share (face value PKR 10 each) for every 325 Silkbank shares (face value PKR 10 each). [10]

References

  1. ↑ "Silkbank Annual Report 2023" (PDF). Retrieved 10 January 2025.
  2. ↑ Illias, Meiryum (May 23, 2021). "HBL vs Bank Alfalah: the race to buy Silkbank's consumer lending business". Profit by Pakistan Today.
  3. ↑ "Silkbank merger with UBL approved". Business Recorder. March 11, 2025.{{cite web}}: |first= has generic name (help); |first= missing |last= (help)
  4. 1 2 3 "Saudi Pak Commercial Bank". DAWN.COM. 2002-07-09. Retrieved 2020-09-12.
  5. ↑ "History of Silkbank".
  6. ↑ "Status of the Company". www.silkbank.com.pk. Retrieved 2020-06-05.
  7. 1 2 "Silk Bank Limited – Business Recorder".
  8. ↑ "MEED – Omani bankers".
  9. ↑ "Arif Habib Corp acquires 28% stake in Silkbank". The Express Tribune. 9 December 2015. Retrieved 2 April 2017.
  10. ↑ "UBL absorbs Silk Bank after SBP approval". Business Recorder. March 11, 2025.
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