PACRA MAINTAINS RATINGS OF THE BANK OF PUNJAB

PACRA MAINTAINS RATINGS OF THE BANK OF

PUNJAB

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of The Bank of Punjab (BoP) at 'AA-'(Double A minus) and'A1+'(A one plus), respectively. The ratings denote a very low expectation of credit risk and indicate very strong capacity for timely payment of financial commitments.

The ratings primarily reflect strong association of the bank with the Government of Punjab (GoPb) as majority shareholder, which has demonstrated continued commitment and support in the dire need. This association has benefited the bank in terms of capital acquisition, sustainable deposit base, and letter of comfort against provisioning for major infected exposures. On a stand alone basis, though the financial profile of the bank is

improving, it remains weak in comparative terms, attributed to sizable non-performing loans - causing constrained earnings and significant potential provisions. Nevertheless, the bank's core operations have come out of losses and demonstrated profitability. Recoveries being the cornerstone of the bank's revival, the legacy NPL portfolio have seen reduction - though fresh infection remains a challenge.

The Bank:

The Bank of Punjab, established under the BoP Act 1989, is listed on all threestock exchanges of the country. The bank operates a vast network of 306 branches, mainly concentrated in Punjab. The Government of Punjab (GoPb) maintains majority stake in BoP (51%), whereas, 13% is owned by EOBI and

the rest by various stakeholders.

Mr. Naeemuddin Khan, the President of the Bank since Sep-08, has over three decades of diversified banking experience and has been associated with reputed international and domestic banks during his career. The senior

management consists of seasoned professionals with extensive experience in banking industry. The current team has played pivotal role in revival of the bank. Their continuity and cohesiveness is critical for successful execution of envisaged business plan