In recognition of the bank’s outlook, as well as its strong financial performance and significant progress in risk management, compliance, governance, and all other facets of operations, 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+.” According to PACRA, “these ratings indicate a very low expectation of credit risk and an extremely strong capacity for timely payment of financial commitments that is not significantly vulnerable to foreseeable events.”
The Bank of Punjab’s credit rating upgrade by PACRA demonstrates the institution’s remarkable growth over the last few years, which has been recognised and accepted by all of its stakeholders, including external monitoring organisations. It took a long time of concerted efforts by the management, aided by the assistance of the sponsor, to resurrect the Bank.
In his brief to the Board of Directors, the CEO PACRA stated, “The incumbent management has restructured and strengthened the Bank’s overall governance and compliance structure, which is critical for oversight and dynamic operations.”
BOP’s balance sheet surpassed the PKR 1 trillion mark in 2020, while its client deposit base increased by 21% to PKR 835 billion. As a result, the system’s deposit share increased slightly, and BOP became prominently qualified for classification as a “large bank.”
“Top management is highly motivated and committed to enhancing profitability and strengthening the Bank’s relative position, and it took a number of unprecedented actions to advance the positive effects of this positivity throughout the organisation. The Bank provided adequate care for its employees and their families during the Covid-19 pandemic by providing all available medical facilities and creating immunisation centres in all major cities for BOP personnel and their families. This level of devotion and motivation among our employees is the true cause for our future positive outlook and rating upgrade,” said Zafar Masud, CEO of BOP.