The Bank of Punjab (BoP) has registered a cumulative average growth rate (CAGR) of 52 percent in deposits during the period from 2003 to 2007, which is higher than the overall industry's growth during the same time. The bank has made a remarkable progress in the last five years which is evident from the relevant statistics, sources in the bank told Business Recorder.
"The market share of BoP in the overall industry deposits has increased from 1.6 percent in 2003 to 5.04 percent in 2007. Advances of the bank on the other hand have grown at an attractive pace of around 82 percent in last five years as against industry's growth of about 27 percent during the same time. Share of BoP in the total industry advances has increased from 0.7 percent in 2003 to 4.56 percent in 2007," they added.
"During the last five years, enormous growth in advances and deposits coupled with attractive returns from investment in NIT and other mutual funds have led to CAGR of 73 percent in profits of the bank.
The CAGR of return on equity (RoE) (on tier-I equity) over the last five years has been at an impressive level of 23 percent while CAGR of return on asset (RoA) during the said period has stood at 16 percent with a current level of 2.2 percent, which is considered most attractive in the banking sector," sources averred.
According to them the share price of the Bank has touched a level of Rs 122 during the year 2007 and a massive investment has been made by the foreign funds in the bank's stocks on recommendations of high profile international and local investment advisory firms.
According to an analysis, an investment in BoP stocks in year 2003 attracts a yield of around 3000 percent over a period of 5 years on the basis of dividends announced by the bank during the said period. The BoP has become a pan-Pakistan Bank with operations in almost all major areas. The business operations of BoP have been enhanced to NWFP and Sindh provinces by opening branches in Hyderabad, Mardan, Sukker and Nowshera.
Presently, the bank is operating with 272 branches linked online on real time basis. In recognition of the impressive performance under the present management, PACRA has upgraded BoP's long-term credit rating to "AA" while the short term rating stands at level of "A1+", which is the highest benchmark in short term rating scales.
The bank has also been adjudged as best managed bank of the country and awarded with Corporate Excellence Award by the Management Association of Pakistan in year 2007.
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