Bank Makramah Limited (BML) has discontinued a potential equity investment proposal from a consortium led by DM Holdings Limited, with the bank instead moving forward with a separate Rs10 billion capital injection planned by its sponsor, Nasser Abdulla Hussain Lootah. The development was disclosed by BML through material information submitted to the Pakistan Stock Exchange on September 10, 2026, outlining a change in the bank’s previously communicated investment plans and its ongoing efforts to strengthen its capital position.
The investment proposal that is no longer being pursued originated from an expression of interest submitted by a consortium led by DM Holdings Limited for a potential equity investment in Bank Makramah. BML had previously informed the Pakistan Stock Exchange about the expression of interest on June 11, 2026. The latest disclosure confirms that the proposal will not proceed, removing the DM Holdings-led consortium from the bank’s current capital-raising plans. The bank is now relying on a separate funding arrangement proposed by its existing sponsor to provide additional capital.
On August 18, 2026, the board of directors of Bank Makramah approved a proposal submitted by Nasser Abdulla Hussain Lootah for a further Rs10 billion injection into the bank. The proposed funding remains subject to the applicable corporate and regulatory approvals. Under the arrangement approved by the board, the funds will initially be recorded as an advance against share subscription rather than immediately being treated as issued share capital.
The board has authorised BML’s president and chief executive officer to enter into an agreement with Lootah covering the terms and conditions for depositing the proposed funds. The Rs10 billion amount will remain classified as an advance against share subscription until all necessary corporate and regulatory approvals are secured. Once those approvals are obtained, the bank will be able to proceed with the issuance of shares to the sponsor through a method other than a right issue, in line with the approved arrangement.
The additional funding is expected to provide further support to Bank Makramah’s capital base as the institution continues efforts to meet regulatory requirements and maintain its operations. The proposed injection also comes during a period in which the bank is continuing its transition from its previous identity as Summit Bank Limited. The capital strengthening measures are part of the broader restructuring and transformation process undertaken by the institution following Lootah’s acquisition of a controlling position in the bank.
Lootah acquired control of Summit Bank in April 2023 after subscribing to 3.98 billion newly issued shares for Rs10 billion. The transaction gave the UAE-based investor a majority equity position in the institution. Following the acquisition, Lootah outlined plans to transform the bank into a full-fledged Islamic banking institution, setting the stage for a wider restructuring of the bank’s operations, ownership structure and financial position.
Bank Makramah’s restructuring efforts also included a court-sanctioned financial restructuring plan. In November last year, the Islamabad High Court approved the bank’s restructuring plan, allowing the institution to address the State Bank of Pakistan’s minimum capital requirements. Under the restructuring arrangement, Lootah’s stake was proposed to be reduced from 86.1% to 75.8%, based on a revised share value of Rs6.25. The restructuring was designed to provide the bank with a stronger financial foundation while addressing accumulated financial pressures.
In January, BML announced that it had implemented the financial restructuring plan approved by the court. The implementation included the elimination of accumulated losses, marking another step in the bank’s efforts to improve its financial position and move toward profitable growth. The latest Rs10 billion funding proposal from Lootah therefore adds another layer to the institution’s capital-strengthening efforts, while the decision to discontinue the DM Holdings-led proposal leaves the sponsor’s planned investment as the current route for additional equity support.
The bank’s latest disclosure highlights its continued focus on strengthening capital adequacy, meeting regulatory requirements and supporting its transformation strategy. With the DM Holdings-led investment proposal no longer under consideration, the proposed Rs10 billion sponsor injection will remain subject to the necessary approvals before shares can be issued under the planned structure.
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