The Bank of Punjab (BOP) has hired M/s. KPMG Taseer Hadi & Co. to serve as its consultant for a thorough investigation into the viability and conversion dynamics for the conversion of BOP’s conventional banking operations into Islamic banking.
The senior management of BOP and representatives from KPMG attended the ceremony at the BOP headquarters to formally announce this engagement. This feasibility study’s main goal is to evaluate all of the potential implications, difficulties, and operational complexities that switching to Islamic banking might entail.
While important, this first step is only one in a long process that will ultimately decide how BOP’s banking operations will proceed.
A well-known financial institution in the nation, The Bank of Punjab (BOP) has PACRA Ratings of AA+ for the Long Term and A1+ for the Short Term. It maintains a network of 780 branches and sub-branch locations throughout Pakistan, including 140 Islamic Banking branches and 640 Conventional branches, respectively.
Islamic Banking has become a key area of strategic growth for the Bank because of its growing appeal to customers of various faiths, cost effectiveness, and significant potential for growing market presence. This expansion is consistent with the shifting environment, particularly in the wake of the Federal Shariat Court’s recent decision calling for a switch from an interest-based system to an Islamic financial system. As a result, BOP is presently looking into the possibility of turning its Conventional Bank into a fully functional Islamic Bank.
The Bank of Punjab has spent the last three years enhancing the capabilities of its Islamic Banking Group (Taqwa) under the direction and vision of its Board of Directors (BOD). This has been accomplished by introducing state-of-the-art Shariah-compliant goods and services, as well as top-notch customer service provided by specialised Islamic banking branches and more than 50 Islamic banking windows (IBWs) integrated into its traditional branches across the country.
The Bank of Punjab is adamantly committed to expanding the availability of Islamic banking throughout Pakistan in the coming years. Regions like Khyber Pakhtunkhwa and merged areas, Gilgit-Baltistan, Sindh, and Balochistan are given particular attention by the bank.
The establishment of full-fledged Islamic banking branches and the incorporation of Islamic banking windows (IBWs) will be used to carry out this expansion.
