The Bank of Punjab (BOP) Pakistan
Bank of Punjab (BOP) Pakistan: Punjab Bank is a Pakistani bank with headquarters in Lahore, Pakistan. It represents Pakistan and operates as an international bank. And is one of the country’s leading financial institutions holding PACRA AA ratings.
History Bank of Punjab
The bank was set up in 1989 pursuant to The Bank of Punjab Act 1989 and was given retail banking status in 1994.
Overview Bank of Punjab
Tajammal Hussain founded the Bank of Punjab and operates as a scheduled commercial bank, with a network of over 587 branches in major business centers across the country. It is the Country’s seventh biggest commercial bank.
This offers a wide range of banking services including local currency deposits. Foreign currency deposits for clients, remittances, and advances to companies, finance, manufacturing, and agriculture. First Punjab Modaraba (FPM), a wholly-owned bank subsidiary, was established in 1992. And is operated by Punjab Modaraba Services (Pvt) Ltd.
Partnerships and Procurement
The Bank of Punjab is currently headed by Mr. Khalid Siddiq Tirmizey who acts as the acting Chairman & CEO of the bank. He has also been chairman of First Punjab Modaraba’s board of directors.
1Link Partnership (March 2019)
The Bank of Punjab has collaborated with 1Link – PSO / PSP, Payment, and Switch Program in Pakistan. To digitize the Social Security Institute of Punjab Employees (PESSI) to allow employees to receive, distribute, or exchange payments across the county across digital channels.
Punjab Safe Cities Authority (October 2018)
In October 2018, the Bank of Punjab collaborated with the Punjab Safe Cities Authority. To support the e-Challan collection by means of an electronic monitoring system installed in Lahore. The facility will enable the collection of challan right at the location by Punjab’s government branches such as Traffic police.
Karandaaz Pakistan (January 2015)
The Bank of Punjab has signed a memo (MoU) with Karandaaz Pakistan–a business investment forum–to allow the government to digitize its payments.
The agreement will promote digital transactions for Pakistani people, allowed by Karandaaz software. And expand a suite of digital financial services to support government and citizens alike.
BOP Comes out of Ashes
The Bank of Punjab’s management organized a press conference on Friday. To build public trust in The Bank of Punjab’s affairs by highlighting the bank’s achievements in recent years and its future plan.
According to a press release, the Bank of Punjab became a city talk in 2007. Due to controversies relating to imprudent lending, mismanagement, and the theft of public money during the bank’s ex-president, Hamesh Khan’s tenure.
The country was shocked to hear the many tales of malpractice and political interference in Punjab’s government-owned bank affairs. The general public lost confidence in the bank. Resulting in the removal of deposits worth billions of rupees from the bank in a matter of days, crippling the bank’s entire lifeline.
The bank was on the brink of total disaster and the very survival of the company was at stake with
such a large corrupted debt, poor management structure, failure to stay consistent with simple regulatory liquidity criteria, and a totally tarnished public image.
General elections were held in the country during the early part of 2008. Leading to the formation of the new government in Punjab under Shahbaz Sharif’s leadership.
Being the majority shareholder, the issues related to The Punjab Bank were high on the agenda of the newly formed Punjab government. When discussing the various options available, including the bank’s sale and acquisition. The consensus was formed on making a final attempt to save. The financial institution by consolidation and reorganization.
Bank deposits experienced strong growth of 117 percent over 2008 during the period 2009-Sep-2015 and reached the stage of Rs. 356.6 billion.
In reality, the Bank was able to reduce the cost of deposits from 10.89 percent to 5.32 percent. During that period, Bank investments witnessed tremendous growth of 731 percent. With a significant concentration of government securities to improve the overall risk profile of assets.
Awards and Reviews
Central Board of Revenue’s Excellence Award The Central Board of Revenue awarded the Bank of Punjab with the “Excellence Prize” in recognition of the bank’s contribution to the government exchequer.