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Silkbank Silkbank from here to here how did it happen and what happened to customers' money? What was the reason that Silkbank reached this point that it had to merge with UBL? The biggest problem was bad loans. In 2022, Silkbank had given loans of approximately 94 billion rupees. Out of these, half of the loans had become non-performing. Meaning, for every 2 rupees spent, 1 rupee was not being returned on time. A large part of these bad loans was linked to the real estate sector. Yes, until the borrower doesn't pay the installment, the bank cannot earn the expected profit from its income. Instead, to cover the possible loss, the bank has to set aside money from its income, which is called provision. The second problem was funding cost. Rising interest rates meant Silkbank had to give more return to depositors. But many loans and assets were not generating proper income. In simple words, the bank was taking money at a higher rate but earning less from it. And the result was that by March 2022, Silkbank had a loss of 18.7 billion and equity was negative 13.9 billion. March 2025 In March 2025, Silkbank was merged with UBL and customers' accounts and banking services were transferred. And after that, we all saw and are still seeing the rise of UBL.