BOP approves up to PKR 30 billion equity injection from Punjab government

The Board of Directors of The Bank of Punjab (BOP), at a meeting held on Aug. 7, 2026, approved a proposal for an equity injection of up to PKR 30 billion by the Government of Punjab through the issuance of ordinary shares other than by way of a rights issue.

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

The proposed capital injection is aimed at strengthening BOP’s capital base and supporting the bank’s future growth ambitions.

The shares will be issued at PKR 38.20 per ordinary share. However, if the prevailing market price of BOP’s ordinary shares at the time of issuance is higher, the issue price will be set at the prevailing market price plus a 5% premium. PKR 38.20 per share will therefore serve as the floor price for the issuance.

BOP said the proposed capital injection comes as the bank continues a broader transformation that has involved expanding its balance sheet, strengthening financial performance and building market positions in key segments of Pakistan’s economy.

The bank said it currently ranks as Pakistan’s number one bank in SME, agriculture and affordable housing finance, women’s leadership, credit card issuance and digital lending. It is also expanding its presence in export-oriented commercial and corporate banking.

The bank said this expansion has increased demands on its capital base, which has historically remained thin relative to the scale of its operations and growth potential.

The proposed equity injection is expected to provide BOP with additional capital to expand its core businesses, grow low-cost deposits and maintain financial resilience while managing its balance sheet prudently.

BOP described the planned capital raise as growth capital, noting that the bank recorded revenue growth of approximately 29% and earnings growth of more than 40% year on year in 2025, alongside a significant increase in its share price.

The additional capital will also support BOP’s next phase of expansion, including an international venture recently approved by the State Bank of Pakistan.

“This capital injection is a vote of confidence by the Government of Punjab in BOP’s strategy and its people,” Zafar Masud, president and CEO of The Bank of Punjab, said.

“It equips the Bank to scale the priority-sector franchises we have built from SME and agriculture to affordable housing and digital lending and to carry BOP’s story to the next stage, at home and beyond Pakistan’s borders.”

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