The State Bank of Pakistan (SBP) has granted The Bank of Punjab (BOP) in-principle approval to establish an overseas wholesale banking unit in the Kingdom of Bahrain, taking the bank a step closer to expanding its international footprint.
The development marks a significant milestone in BOP’s overseas growth strategy and follows the bank’s earlier announcement in July 2024 regarding its plans to enter the Bahraini banking market.
SBP grants in-principle approval
According to a disclosure submitted to the Pakistan Stock Exchange (PSX), the central bank has provided initial approval for the proposed wholesale banking unit.
However, the approval remains conditional upon obtaining all required regulatory clearances from authorities in both Pakistan and Bahrain.
BOP will also be required to comply with all applicable laws, regulatory requirements, and conditions imposed by the State Bank of Pakistan before launching operations.
Bahrain approvals still required
Before commencing operations, the proposed banking unit must obtain a No Objection Certificate (NOC) from the Central Bank of Bahrain.
In addition, the bank will need to secure the necessary banking license from the State Bank of Pakistan before the overseas branch becomes operational.
Only after completing these regulatory requirements will the Bahrain wholesale banking unit begin serving clients.
Expanding international presence
The planned Bahrain operation is part of BOP’s broader strategy to strengthen its international presence and expand its banking services beyond Pakistan.
Wholesale banking units primarily provide financial services to corporate clients, financial institutions, and large businesses, rather than retail customers.
Bahrain is considered one of the Middle East’s leading financial hubs, making it an attractive destination for Pakistani banks seeking regional expansion.
BOP to keep investors informed
The Bank of Punjab said it will continue to inform the Pakistan Stock Exchange of any material developments related to the project in line with regulatory disclosure requirements.
The latest approval represents an important step toward establishing BOP’s presence in Bahrain, although the bank must still complete the remaining regulatory process before officially launching operations.
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