Bank Makramah lands $36M from sponsor Nasser Lootah to shore up capital
What's the deal? Bank Makramah Limited's board has approved a proposal from its sponsor, Nasser Abdulla Hussain Lootah, to inject a further Rs10 billion — over $36 million — into the Pakistani bank. Bank Makramah disclosed the post-IPO equity investment in a notice to the Pakistan Stock Exchange on 18 August 2026.
Where the money goes: The funding strengthens the bank's capital base as it works to meet regulatory requirements and support operations. The board authorised the president and chief executive officer to execute an agreement setting out the terms under which Lootah will deposit the funds.
How it's booked: The Rs10 billion will be recorded as an advance against share subscription until regulatory and corporate approvals are obtained for issuing shares to the sponsor. That issuance will be by way of other than a rights issue.
Why now? Bank Makramah — formerly Summit Bank — has spent more than three years reshaping its balance sheet. Lootah acquired a controlling stake in April 2023, subscribing to 3.98 billion new shares for Rs10 billion, with a plan to convert the lender into a full Islamic bank.
What's the endgame? In November 2025, the Islamabad High Court approved Bank Makramah's restructuring plan, letting the bank comply with the State Bank of Pakistan's minimum capital requirements. Lootah proposed cutting his shareholding from 86.1% to 75.8% at a higher share value of Rs6.25. In January 2026, Bank Makramah said it had implemented the court-sanctioned plan, eliminating accumulated losses.
Read more: Business Recorder
Image credit: Magharebia
