Shareholders of The Bank of Punjab (BOP) have formally approved an equity injection of up to Rs30 billion from the Government of Punjab (GoPb), marking a significant capital expansion for the bank. The approval was granted during an Extraordinary General Meeting (EOGM) held in Lahore on September 8, 2026. The decision allows the Punjab government to increase its investment in the bank through the issuance of new ordinary shares.
Under the resolutions approved at the meeting, BOP will issue new ordinary shares to the Government of Punjab outside of a right issue. The capital injection will be carried out in phases and remains subject to the completion of statutory and regulatory approvals. The bank will need to secure the necessary clearances from the Securities and Exchange Commission of Pakistan (SECP), the State Bank of Pakistan (SBP), and the Pakistan Stock Exchange (PSX) before the share issuance process can be completed.
The approved pricing structure sets the issue price at PKR 38.20 per ordinary share. However, where the prevailing market price of BOP shares at the time of issuance is higher than the approved floor price, the shares will instead be issued at the prevailing market price with an additional 5% premium. This structure provides a defined minimum price while allowing the final subscription price to reflect market conditions at the time each tranche is issued.
The capital subscription will take place through two planned tranches. Under the first tranche, the Government of Punjab is expected to subscribe between Rs15 billion and Rs20 billion in cash by December 31, 2026. The second tranche will cover the remaining Rs10 billion to Rs15 billion, with the cash subscription targeted for completion by June 30, 2027. The phased structure will allow the approved equity injection to be implemented over a defined period while the bank completes the required regulatory and procedural steps.
BOP has also been authorized to accept an initial advance equity payment of up to Rs10 billion from the Government of Punjab before the formal issuance of shares. This advance subscription arrangement will allow the bank to receive part of the approved capital ahead of the formal share issuance process, subject to the applicable regulatory requirements. The move forms part of the broader capital expansion approved by shareholders during the EOGM.
In addition to approving the capital injection, shareholders also approved an updated Board Remuneration Policy. Under the revised policy, members of the Board of Directors, including the Chairman but excluding the President and Chief Executive Officer, will receive Rs395,000 net of taxes for each meeting attended. The approved remuneration will apply to meetings of the Board of Directors as well as Sub-Committee meetings.
The bank’s executive leadership has also been authorized to undertake the necessary actions required to implement the approved resolutions. The President and Chief Executive Officer, Chief Financial Officer, and Company Secretary have been empowered to execute the required agreements, complete applications and filings with the relevant regulators, and finalize the allocation of shares under each tranche. The approved authority is intended to facilitate the completion of the capital injection process in accordance with applicable legal and regulatory requirements.
The Rs30 billion equity injection represents a major capital commitment by the Government of Punjab toward BOP. With the approval now secured from shareholders, the next stages will focus on obtaining the remaining regulatory clearances and implementing the subscription according to the approved schedule. The bank will proceed with the phased issuance and related formalities after fulfilling the requirements of the SECP, SBP, and PSX.
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