KARACHI: The United Bank Limited (UBL) Board of Directors has approved a Rs1 billion investment in UBL Currency Exchange (Private) Limited (UBLCEPL), the bank's wholly-owned subsidiary.
“The Board of Directors of United Bank Limited has approved an investment of Rs1 billion in its wholly-owned subsidiary UBL Currency Exchange (Private) Limited (UBLCEPL) to increase its paid-up capital to Rs2 billion, subject to all applicable corporate compliances and the regulatory approvals,” the bank said in a bourse filing on Wednesday.
“This investment will help capitalise UBL Currency Exchange (Private) Limited for available expansion options and is expected to yield real benefits for United Bank Limited in the future,” it added.
In September 2023, the UBL had previously declared that it would establish a wholly-owned exchange firm following the State Bank of Pakistan's crackdown on currency exchange companies in an effort to curb illegal dollar trade.
The State Bank of Pakistan introduced structural reforms in the exchange companies’ sector. One component of the reforms involved the SState Bank of Pakistan pushing top banks to set up fully owned exchange companies to serve the public's legitimate need for foreign currency.