The Pakistan Credit Rating Agency (PACRA) upgraded The Bank of Punjab’s long-term entity rating to “AA+” after a five-year hiatus, with the short-term highest rating of “A1+,” in recognition of the bank’s outlook, strong financial performance, and significant progress in risk management, compliance, governance, and all other aspects of operations. “These ratings imply a very low anticipation of credit risk and an extraordinarily robust capacity for prompt payment of financial commitments that is not considerably subject to predictable circumstances,” according to PACRA.
PACRA’s credit rating increase for the Bank of Punjab reflects the institution’s tremendous expansion in recent years, which has been recognised and approved by all of its stakeholders, including external monitoring organisations. The Bank was resurrected after a long period of persistent efforts by management, aided by the sponsor’s assistance.
“The incumbent management has reformed and enhanced the Bank’s entire governance and compliance framework, which is vital for oversight and dynamic operations,” the CEO PACRA wrote in his brief to the Board of Directors.
In 2020, BOP’s balance sheet exceeded PKR 1 trillion, while its client deposit base expanded by 21% to PKR 835 billion. As a result, the system’s deposit share climbed somewhat, and BOP qualified as a “big bank” for the first time.
“Top management is highly driven and devoted to increasing profitability and boosting the Bank’s relative position, and it has taken a number of extraordinary steps to spread this attitude throughout the organisation. During the Covid-19 pandemic, the Bank offered proper care for its employees and their families by providing all available medical services and establishing vaccination centres across the country.
