Subtitle: Bank awaits regulatory approvals from Bahrain and Pakistan before launching its overseas wholesale banking operations.
ISLAMABAD: The State Bank of Pakistan (SBP) has granted in-principle approval to The Bank of Punjab (BOP) to establish an Overseas Wholesale Banking Unit in the Kingdom of Bahrain, marking a significant milestone in the bank’s strategy to expand its international presence.
The development was disclosed by the Bank of Punjab in a material information notice submitted to the Pakistan Stock Exchange (PSX) on Thursday in accordance with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the PSX Regulations.
SBP Grants Initial Approval
According to the disclosure, the SBP conveyed its in-principle approval through a letter dated August 5, 2026, authorising the bank to proceed with plans to establish an Overseas Wholesale Banking Unit in Bahrain.
The approval, however, remains subject to obtaining all necessary regulatory permissions from the relevant authorities in both Pakistan and the Kingdom of Bahrain, along with compliance with all applicable laws, regulations and conditions prescribed by the central bank.
Further Regulatory Clearances Required
The Bank of Punjab said the proposed overseas wholesale banking unit will commence operations only after securing all mandatory approvals.
These include:
• A No Objection Certificate (NOC) from the Central Bank of Bahrain.
• The requisite banking licence from the State Bank of Pakistan.
• Compliance with all regulatory and legal requirements in both jurisdictions.
The bank emphasised that operations will begin only after all regulatory conditions have been fulfilled.
Expansion Strategy
The latest approval follows the bank’s earlier disclosure made on July 4, 2024, regarding its intention to establish an overseas banking presence in Bahrain.
The proposed wholesale banking unit is expected to strengthen the Bank of Punjab’s international footprint, enhance cross-border banking capabilities and support corporate and institutional clients engaged in regional trade and investment.
Bahrain’s Strategic Importance
Bahrain is regarded as one of the Gulf region’s leading financial centres, providing access to international financial markets and serving as a key hub for banking and financial services in the Middle East.
By establishing a wholesale banking unit in Bahrain, the Bank of Punjab aims to expand its regional presence and improve banking services for businesses operating across international markets.
The bank reaffirmed its commitment to keeping the Pakistan Stock Exchange informed of any further material developments in accordance with applicable legal and regulatory requirements.