Lahore: The Board of Directors of The Bank of Punjab (BOP) has approved an equity injection of up to PKR 30 billion by the Government of Punjab, setting the floor price at PKR 38.20 per share. The transaction is contingent upon receiving all necessary statutory, corporate, shareholder, and regulatory approvals, aiming to bolster BOP's capital base and support its growth objectives.

According to The Bank of Punjab, this capital injection is a significant step in the bank's transformation journey, which has seen it expand its balance sheet and enhance its financial performance in recent years. The bank has established a strong market presence in sectors crucial to Pakistan's economy, including SME, agriculture, affordable housing finance, and digital lending. The equity injection is intended to fortify BOP's capital position, allowing it to sustain growth in core markets and manage its balance sheet prudently.

The proposed issuance of ordinary shares will be made at PKR 38.20 per share, with a provision to adjust the price to the prevailing market rate plus a 5% premium if the market price exceeds the floor price at the time of issuance. This move aims to ensure the bank can continue its expansion without facing capital constraints, thereby supporting its international ventures and domestic operations.

Zafar Masud, President & CEO of The Bank of Punjab, remarked that the capital injection signifies the Government of Punjab's confidence in BOP's strategy and capabilities. He emphasized that the funds will enable the bank to scale its priority-sector franchises and advance its growth story both within Pakistan and internationally.

The process for the equity injection will be executed in phases, with completion targeted by June 30, 2027.