LAHORE: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the ratings of The Bank of Punjab (BOP) for its Tier 2 Capital Term Finance Certificate, valued at PKR 7.5695 billion, as of June 2024. The Bank's robust performance is buttressed by the strategic backing of its principal shareholder, the Government of Punjab, which bolsters its market credibility and access to underserved sectors.

BOP has leveraged its public-sector parentage to enhance its institutional strength and policy alignment. This relationship has significantly contributed to the Bank's growth in high-impact sectors such as agriculture, small and medium enterprises (SMEs), and financial inclusion. In the past three years, BOP's SME market share has surged from 6% to 15.6%, reflecting its targeted support for small businesses, women entrepreneurs, and rural communities.

The Bank's commitment to digital transformation is evident, with a reported 95.3% increase in digital transaction volumes since 2022. Currently, 75% of all transactions are conducted through digital channels. Initiatives such as SME e-Qarza, freelancer accounts, and government-backed schemes like Kissan and Livestock Cards exemplify BOP's dedication to financial inclusion and service modernization.

In CY24, BOP's deposit base grew by 12.5% to PKR 1,710.3 billion, driven by a 24.3% rise in current account deposits. This increase contributed to a conservative lending approach, as indicated by the decline in the advance-to-deposit ratio to 45.4%.

The Bank's profit after tax rose by 17.9% to PKR 13.4 billion, supported by a substantial 50.6% increase in non-markup income, notably from foreign currency income and fee and commission income. Additionally, BOP's equity base expanded to PKR 92.5 billion, with a capital adequacy ratio of 17.93%.

As BOP continues to explore foreign funding opportunities, it remains well-positioned to sustain its growth trajectory, aided by a stable deposit base and strategic initiatives focused on digital and financial inclusion.