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The Bank of Punjab has proposed issuing up to Rs30 billion worth of ordinary shares to the Government of Punjab through a non-rights issue, subject to shareholder and regulatory approvals, with the subscription planned in two tranches by June 2027.
The Bank of Punjab (BoP) has proposed issuing up to Rs30 billion worth of ordinary shares to the Government of Punjab through a non-rights issue, in a move that could further strengthen the public-sector lender’s capital base and support its future expansion.
According to Business Recorder and Dawn, the bank disclosed the proposal in a notice to the Pakistan Stock Exchange (PSX), with the investment planned in two tranches and subject to the required corporate and regulatory approvals.
Under the proposal, the Punjab government would subscribe to up to Rs20 billion worth of shares by December 31, 2026, while the remaining amount would be subscribed by June 30, 2027. The bank said the proposed transaction would be carried out “subject to obtaining all applicable regulatory and corporate approvals.”
The Board of Directors has proposed “the issuance of ordinary shares, otherwise than by way of right issue, to the Government of the Punjab, against a proposed equity subscription of up to Rs30 billion to be undertaken in two tranches,” according to the bank’s notice.
BoP has set an initial issue price of Rs38.20 per ordinary share. However, the bank clarified that if its prevailing market price at the time of issuance is higher than that amount, a different price mechanism would apply.
“The applicable issue price for such issuance shall be the prevailing market price plus a premium of 5%,” the bank said, establishing a pricing formula that would link the final issue price to market conditions.
The proposed share issuance will require approval from BoP shareholders through an Extraordinary General Meeting as well as clearances from relevant regulators, including the State Bank of Pakistan (SBP) and the Securities and Exchange Commission of Pakistan (SECP).
The transaction would provide the Punjab government with additional equity exposure in the bank while potentially strengthening BoP’s capital position. For the bank, the proposed injection comes as it continues to pursue growth opportunities and expand its operations beyond the domestic market.
Established in 1989, the Bank of Punjab is a major public-sector commercial bank with a broad presence across Pakistan. The lender has expanded its branch network and banking services over the years and has increasingly focused on digital banking, corporate financing and other financial services.
The proposed capital injection also follows a recent step towards expanding BoP’s international footprint. The bank received in-principle approval from the State Bank of Pakistan to establish an Overseas Wholesale Banking Unit in Bahrain, marking progress in its plans to develop an international presence.
The Bahrain initiative and proposed equity subscription indicate that BoP is pursuing expansion while seeking to strengthen its financial position. The additional capital could provide the bank with greater capacity to support lending, invest in technology and pursue new business opportunities.
The proposed Rs30 billion transaction, however, remains subject to the completion of the approval process and does not represent a completed share issuance at this stage. If approved and implemented as planned, the investment would deepen the Punjab government’s ownership in the bank while providing BoP with additional capital to support its longer-term growth strategy.
