Lahore: The Bank of Punjab (BOP), bolstered by support from its principal shareholder, the Government of Punjab, has demonstrated impressive growth and innovation, according to a recent assessment by The Pakistan Credit Rating Agency Limited (PACRA). The public-sector backing has allowed the bank to strengthen its market presence, particularly in underserved sectors such as agriculture and small to medium-sized enterprises (SMEs).

BOP's SME market share has significantly increased, doubling from 6% to 15.6% in under three years, thanks to targeted initiatives that support small businesses, women entrepreneurs, and rural communities. The bank's involvement in climate-related financing further highlights its commitment to progressive banking practices.

Digital transformation has been a key strategic focus for BOP, resulting in a remarkable 95.3% increase in digital transaction volumes since 2022. Currently, 75% of all transactions are processed through digital channels. This shift is further supported by innovative offerings such as SME e-Qarza and freelancer accounts, as well as government-backed programs like the Kissan and Livestock Cards.

The bank has maintained a stable deposit base, which grew by 12.5% in CY24 to reach PKR 1,710.3 billion. A notable factor in this growth was a 24.3% rise in current account deposits, now constituting 20.7% of the total. Meanwhile, the bank's asset-to-deposit ratio declined to 45.4%, reflecting a more conservative lending policy.

Profit after tax rose by 17.9% to PKR 13.4 billion, driven by a substantial increase in non-markup income, which grew by 50.6% year-over-year to PKR 26.7 billion. The bank's equity base increased to PKR 92.5 billion, with its capital adequacy ratio standing at 17.93%.

BOP continues to explore foreign funding opportunities, reinforcing its commitment to growth and innovation in the financial sector.