Lahore: The Securities & Exchange Commission of Pakistan (SECP) has granted The Bank of Punjab approval to issue a significant number of new shares, marking a pivotal development in the bank's ongoing capital enhancement efforts. This decision follows an application by the bank, dated September 10, 2026, and a special resolution passed by its shareholders in an Extraordinary General Meeting on September 8, 2026.

The competent authority, Commissioner (SMD), authorized the issuance of up to 523,560,209 ordinary shares, totaling a potential Rs. 20 billion in the first tranche. These shares are to be issued as an "other than right offer" to the Government of Punjab, with the issue price to be determined at the higher of Rs. 38.20 or the prevailing market price with an additional 5% premium.

According to information available from the Pakistan Stock Exchange (PSX), the approval is contingent on several conditions. The shares must be issued in book entry form within 60 days from the SECP's approval date. Additionally, The Bank of Punjab is required to notify both the Commission and the Securities exchange within seven days of the share issuance.

The issued shares are subject to retention regulations by the recipients, in alignment with Regulation 5(1)(viii) of the Companies (Further Issue of Shares) Regulations, 2020. The bank must also provide a report to the Commission detailing the shares held in blocked status within the CDC account immediately post-issuance.

This approval, dated October 29, 2026, is based on documents and information previously submitted by the bank, with the Commission disclaiming any responsibility for agreements between the issuer and the prospective shareholders. The move is seen as a strategic effort to bolster the bank's financial base, in line with the regulatory framework set forth by the Companies Act, 2017 and the respective regulations.