UBL to invest up to Rs22bn in Khushhali Microfinance Bank

UBL shareholders have endorsed a fresh capital injection of as much as Rs22 billion into Khushhali Microfinance Bank Limited (KMBL), a company associated with the bank. According to Business Recorder, the bank disclosed the decision to the Pakistan Stock Exchange on Tuesday, noting the step could lift its total holding in the microfinance lender. The UBL board had first cleared the plan last month.

The arrangement involves taking up UBL's proportionate entitlement in a KMBL rights issue, at approximately 51.166 new shares for each existing share held. Each new share carries a face value of Rs10, while the subscription price is Rs2, which amounts to a Rs8 per share discount. Additional purchases could also be made in separate deals or agreements.

KMBL, established in August 2000, is Pakistan's first microfinance institution and aims to promote financial inclusion for low-income households. UBL said KMBL's equity was negative by Rs16.15 billion at December 31, 2025, and that the investment would help strengthen the lender's financials.