Lahore: The Bank of Punjab (BOP) is consolidating its market position as a leader in SME and agriculture sectors, driven by strategic initiatives and digital transformation, according to a recent report by the Pakistan Credit Rating Agency Limited (PACRA).

The bank's growth is supported by its principal shareholder, the Government of Punjab, which facilitates access to underserved market segments and reinforces public trust. Over the past three years, BOP has doubled its SME market share from 6% to 15.6%, emerging as a prominent player in the sector.

BOP has made significant progress in digital transformation, with a 95.3% increase in digital transaction volumes since 2022. Currently, 75% of all transactions are processed through digital channels, reflecting the bank's commitment to modern service delivery and financial inclusion.

The bank's efforts in climate-related financing, along with initiatives like SME e-Qarza and government-backed Kissan and Livestock Cards, underscore its focus on supporting small businesses, women entrepreneurs, and rural communities.

BOP's financial performance in CY24 indicates a 12.5% growth in its deposit base, reaching PKR 1,710.3 billion. This growth is driven by a 24.3% increase in current account deposits, now constituting 20.7% of total deposits.

The bank's profit after tax rose by 17.9% to PKR 13.4 billion, fueled by enhanced non-markup income, which saw a 50.6% year-on-year increase. The equity base grew to PKR 92.5 billion, while the capital adequacy ratio stood at 17.93%.

PACRA's report highlights BOP's strategic alignment with the Government of Punjab, emphasizing its role in development-focused initiatives and the bank's continued exploration of foreign funding opportunities.