Bank of Punjab says the proposed equity injection will strengthen its capital base and support expansion across key sectors and international markets.
LAHORE: The Bank of Punjab (BOP) is set for a major capital boost after its Board of Directors approved a proposal for an equity injection of up to Rs30 billion by the Government of Punjab, aimed at strengthening the bank’s financial position and supporting future expansion.
The decision was taken during a board meeting on August 7, 2026. Under the proposal, Punjab government will subscribe to ordinary shares issued by BOP through a mechanism other than a rights issue.
The transaction is not yet final. It remains subject to all required statutory, corporate, shareholder and regulatory approvals.
Share issuance price
BOP said the proposed shares will initially be issued at Rs38.20 per share. If the bank’s market price is higher at the time of issuance, the shares will instead be issued at the prevailing market price plus a 5% premium.
This makes Rs38.20 the minimum price for the proposed issuance.
The additional equity is expected to strengthen BOP’s capital base and give the bank greater flexibility to expand its balance sheet while maintaining prudent risk-management standards.
Growth across key banking segments
In recent years, BOP has expanded its presence in SME financing, agricultural lending, affordable housing, digital banking and credit cards. The bank has also increased its focus on women’s participation and leadership in financial services.
It is further growing its commercial and corporate banking operations, including services for export-oriented businesses.
However, BOP said the rapid expansion of its operations has increased pressure on its existing capital base. The proposed Rs30 billion injection is therefore expected to provide additional room for lending growth and expansion of its low-cost deposit base.
Strong financial performance
The proposed capital raise comes as BOP continues to report strong financial performance. During 2025, the bank recorded revenue growth of about 29%, while earnings increased by more than 40% year over year.
The bank has described the proposed equity injection primarily as growth capital rather than funding intended to address immediate financial weakness.
International expansion ahead
BOP’s strategy also includes international expansion, with an overseas venture recently receiving approval from the State Bank of Pakistan.
The proposed capital injection could provide the financial support needed for this next stage of expansion while allowing the bank to strengthen its position in Pakistan’s growing financial services market.
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