Bank Makramah accelerates recapitalization with major capital injections and strategic asset sale

Bank Makramah Limited (BML) has announced major progress in its recapitalization efforts, marked by a fresh capital deposit from its sponsor, a major asset sale, and an expected recovery of billions in legacy loans.

In a statement, the bank said His Excellency Nasser Abdulla Hussain Lootah, BML’s sponsor, has deposited PKR 5 billion as an advance against share subscription. The deposit is pending regulatory approvals and adds to his earlier PKR 10 billion capital injection made in 2023.

The bank said this contribution is part of a broader commitment by the sponsor, which includes the proposed merger of his company, Global Haly Development Limited, into BML. The merger would bring Lootah's total contribution to PKR 41 billion.

BML extended its deepest gratitude to the sponsor, calling his support a reflection of his vision for both the bank and Pakistan’s financial sector.

Alongside the capital injection, BML’s Board of Directors has approved the sale of the Cullinan Tower, a landmark property located in Clifton, Karachi. The tower was sold for a confirmed offer of PKR 12 billion.

The bank described the sale as a “major step” that will generate liquidity and capital gains, further boosting its financial stability.

Additionally, BML said it is in the final stages of recovering over PKR 13 billion in legacy non-performing loans. The recovery, expected in the near future, is projected to significantly improve profitability and strengthen the capital base.

Combined, the sponsor’s contribution, the tower sale, and the expected loan recovery are expected to increase the bank’s net assets by approximately PKR 50 billion.

BML said these measures reflect its commitment to long-term financial growth and its role in strengthening Pakistan’s financial sector.

“Bank Makramah is a leading financial institution in Pakistan, known for its commitment to providing exceptional banking services to its customers,” the bank said in the statement.

“With a focus on innovation and customer-centric solutions, Bank Makramah continues to set new benchmarks in the industry, ensuring that its customers enjoy secure, reliable, and personalized banking experiences,” the statement concluded.

The recapitalization drive comes at a time of growing competition and regulatory tightening in Pakistan’s banking sector. BML’s moves signal a strategic attempt to position itself for sustainable expansion and improved market performance.

The statement did not mention when regulatory approvals for the share subscription or merger are expected.

Bank Makramah has not disclosed the buyer of the Cullinan Tower but confirmed that the PKR 12 billion offer was accepted by the board.

The sale of the tower is expected to significantly impact BML’s liquidity, giving the bank room to invest in growth, innovation, and customer services.

BML did not specify a timeline for the loan recoveries but indicated that the process is nearing completion.

The combination of capital support, asset reallocation, and debt recovery appears central to BML’s transformation strategy, as it works to build a stronger balance sheet and expand its role in the country’s financial ecosystem.

The developments mark one of the most substantial recapitalization efforts in Pakistan’s banking industry in recent years.