Bank of Punjab Approves Up to Rs30bn Punjab Government Equity Injection
The proposed capital injection will strengthen BOP’s balance sheet and support expansion in SME, agriculture, housing finance and digital lending.
LAHORE, August 7, 2026: The Bank of Punjab (BOP) board has approved a proposal for an equity injection of up to Rs30 billion from the Government of Punjab to strengthen the bank’s capital base and support future growth.
The board approved the proposal at a meeting held on August 7. The government will inject the capital through the issuance of ordinary shares outside a rights issue.
The transaction still requires statutory, corporate, shareholder and regulatory approvals.
Shares to Have Rs38.20 Floor Price
BOP said it will issue the ordinary shares at Rs38.20 per share.
If the bank’s market price is higher when it issues the shares, BOP will use the prevailing market price plus a five per cent premium as the issue price.
The Rs38.20 figure will therefore serve as the minimum price for the proposed issuance.
The bank plans to complete the equity injection in phases. It has targeted June 30, 2027, for completion of the overall process.
Capital to Support Further Growth
BOP said the proposed injection will strengthen its capital position and provide greater room for expansion.
The bank has expanded its balance sheet and strengthened its position in several key segments in recent years.
According to the bank, it now holds leading positions in SME financing, agriculture finance, affordable housing finance, women’s leadership, credit card issuance and digital lending.
It has also continued to expand its presence in export-focused commercial and corporate banking.
BOP said this growth has increased pressure on its capital base. The proposed injection will provide additional capacity for future expansion.
The bank also plans to increase low-cost deposits while maintaining financial resilience and prudent balance-sheet management.
BOP Calls Injection Growth Capital
The bank described the proposed investment as growth capital rather than a measure to address weak performance.
BOP reported revenue growth of around 29 per cent during 2025. Its earnings also increased by more than 40 per cent year on year.
The bank said its share price also recorded significant growth during the period.
The new capital will support the next stage of BOP’s expansion. This includes its international venture, which the State Bank of Pakistan recently approved.
CEO Calls Move Vote of Confidence
BOP President and CEO Zafar Masud welcomed the board’s decision.
He said the investment represents the Government of Punjab’s confidence in the bank’s strategy and employees.
Masud said the additional capital will help BOP expand its priority-sector businesses.
These include SME financing, agriculture, affordable housing and digital lending.
He also said the bank aims to take its business model into new markets beyond Pakistan.
Government Remains Majority Owner
The Bank of Punjab is a listed commercial bank on the Pakistan Stock Exchange. The Government of Punjab remains its majority shareholder.
BOP operates through a nationwide branch network and digital banking services.
The bank focuses on sectors that include small and medium-sized businesses, agriculture, affordable housing and digital finance.
The proposed equity injection could give BOP greater financial capacity as it seeks to expand these businesses and pursue new growth opportunities.
The transaction will proceed subject to the required regulatory and corporate approvals, with the bank targeting completion by June 30, 2027.
