- August 25, 2026
- Posted by: Tresmark
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Shareholders of United Bank Limited (UBL) have approved a further equity investment of up to Rs22 billion in associated company Khushhali Microfinance Bank Limited (KMBL), potentially increasing UBL’s ownership in the microfinance institution.
UBL disclosed the development through a notice to the Pakistan Stock Exchange on Tuesday.
The proposed investment will primarily be made through UBL’s participation in KMBL’s rights issue, under which existing shareholders will be offered approximately 51.166 new ordinary shares for every one existing share held.
The new shares, having a face value of Rs10 each, will be offered at a subscription price of Rs2 per share, representing an Rs8 discount to face value. UBL may also acquire additional KMBL shares through other transactions or arrangements.
KMBL was established in August 2000 and focuses on expanding financial inclusion by providing financial services to low-income individuals, households and entrepreneurs across Pakistan.
The investment comes as KMBL faces a significant capital shortfall. The microfinance bank reported negative equity of Rs16.15 billion as of December 31, 2025.
UBL’s board had already approved the proposed investment last month, with the latest shareholder approval clearing the way for the transaction.
UBL said the additional capital would help strengthen KMBL’s financial position and support the stability of Pakistan’s financial system, while potentially allowing UBL to increase its aggregate shareholding in the microfinance bank.
