Punjab govt backs BOP with up to Rs30bn equity

August 10, 2026 (MLN): The Bank of Punjab's (PSX: BOP) capital injection of up to Rs30 billion has been described as a vote of confidence by the Government of Punjab in the Bank's strategy and its people, equipping it to scale priority-sector franchises built across SME, agriculture, affordable housing and digital lending, and to carry BOP's story forward at home and beyond Pakistan's borders, President & CEO Zafar Masud said.

The Board of Directors of BOP, at its meeting held on August 7, 2026, approved a proposal for an equity injection of up to Rs30bn by the Government of Punjab through the issuance of ordinary shares, otherwise than by way of a rights issue.

The transaction remains subject to all applicable statutory, corporate, shareholder and regulatory approvals.

The shares will be issued at Rs38.20 per ordinary share; if the prevailing market price of the Bank's ordinary shares at the time of issuance is higher, the issue price will be the prevailing market price plus a premium of 5%. Rs38.20 per share therefore serves as the floor price for the issuance.

Over the past several years, BOP has undergone a transformation, expanding its balance sheet, strengthening its financial performance and building leading market positions in segments most vital to Pakistan's economy.

The Bank today ranks as the country's number one bank in SME, agriculture and affordable housing finance, women's leadership, credit card issuance and digital lending, while deepening its presence in export-oriented commercial and corporate banking.

The pace of this expansion has placed growing demands on a capital base that has historically remained thin relative to the scale of the Bank's operations and its growth potential.

The proposed equity injection will strengthen and deepen BOP's capital base, creating headroom for the Bank to keep growing in its core markets and expanding low-cost deposits without capital constraints, while ensuring financial resilience and prudent balance-sheet management.

This is growth capital, coming at a time of strong underlying performance: during 2025, BOP recorded revenue growth of approximately 29% and earnings growth of more than 40% year-on-year, alongside significant appreciation in the Bank's share price.

The capital raise will support the next stage of BOP's expansion, including the Bank's international venture recently approved by the State Bank of Pakistan.

The equity injection will be undertaken in phases, with the overall process targeted for completion by June 30, 2027.

The Bank of Punjab is one of Pakistan's leading commercial banks, majority-owned by the Government of Punjab and listed on the Pakistan Stock Exchange.

The Bank serves customers across the country through an extensive branch and digital network, with market-leading franchises in SME, agriculture and affordable housing finance, and digital lending.

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