By SKM
August 10, 2026
ISLAMABAD: The Bank of Punjab (BOP) board has approved a proposal for an equity injection of up to Rs30 billion by the Government of Punjab, in a move aimed at strengthening the bank’s capital base and supporting its expansion plans.
According to a statement issued by BOP on August 7, the proposed capital injection will be made through the issuance of ordinary shares to the provincial government, other than by way of a rights issue. The transaction is subject to applicable statutory, corporate, shareholder and regulatory approvals.
The shares will be issued at a floor price of Rs38.20 each. However, if BOP’s prevailing market price at the time of issuance is higher than Rs38.20, the issue price will be set at the prevailing market price plus a 5% premium.
The bank said the capital injection is intended to provide additional capacity for growth, particularly in its core businesses, while allowing it to expand low-cost deposits without placing pressure on its capital position.
BOP said it has significantly expanded its balance sheet and strengthened its financial performance in recent years, building a strong position in sectors including small and medium-sized enterprises (SMEs), agriculture, affordable housing and digital lending.
The bank said it currently ranks as Pakistan’s largest bank in SME, agriculture and affordable housing finance, as well as women’s leadership, credit card issuance and digital lending. It has also been expanding its presence in export-oriented commercial and corporate banking.
The proposed capital raise comes after a period of strong financial performance. BOP said its revenue increased by about 29% in 2025, while earnings grew by more than 40% year-on-year. The bank also pointed to a significant appreciation in its share price during the period.
BOP said the additional capital would support the next phase of its 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,” BOP President and CEO Zafar Masud said.
He added that the additional capital would enable the bank to scale its businesses in priority sectors, including SME and agriculture financing, affordable housing and digital lending, while supporting its expansion beyond Pakistan.
The equity injection is expected to be carried out in phases, with the overall process targeted for completion by June 30, 2027.
The proposed transaction, once completed, would mark a significant increase in BOP’s capital base and provide the bank with additional capacity to pursue its growth strategy while maintaining balance-sheet resilience. Ends
