The Bank of Punjab appoints KPMG to study feasibility of transformation to Islamic banking

LAHORE: The Bank of Punjab (BOP) has appointed M/s. KPMG Taseer Hadi & Co. as its consultant to undertake a comprehensive study to review the feasibility and conversion dynamics for transformation of BOP’s conventional banking operations into Islamic banking, stated a press release.

“The ceremony to formalise this engagement took place at the BOP Head Office and was attended by the senior management of BOP along with representatives from KPMG,” the press release added.

“The underpinning objective of this feasibility study is to holistically assess the potential implications, challenges, and operational intricacies that a conversion to Islamic Banking may involve. This inaugural step, while significant, is part of a comprehensive process that will eventually determine the direction BOP’s banking operations will take.”

The press release added that The Bank of Punjab (BOP) stands as a prominent financial institution within the country, boasting PACRA Ratings of AA+ for the Long Term and A1+ for the Short Term.

“It maintains a network of 780 branches and sub-branches spanning Pakistan, comprising 640 conventional branches (82%) and 140 Islamic Banking branches (18%).

“Given its rising popularity among faith-based customers, cost-effectiveness, and substantial potential for expanding market presence, Islamic Banking has emerged as a strategic growth area for the Bank. This growth aligns with the changing landscape, particularly in the aftermath of the recent ruling by the Federal Shariat Court pushing for a shift from an interest-based system to an Islamic financial system. In light of this, BOP is actively exploring the possibility of converting its Conventional Bank into a fully-fledged Islamic Bank.

“Under the vision and guidance of its Board of Directors (BOD), The Bank of Punjab has dedicated the past 3 years to bolstering the capabilities of its Islamic Banking Group (Taqwa). This has been achieved through the introduction of cutting-edge Shariah-compliant products and services, alongside exceptional customer care delivered via dedicated Islamic banking branches and over 50 Islamic banking windows (IBWs) integrated into its conventional branches across the nation.

“With unwavering commitment, The Bank of Punjab is steadfast in its determination to extend the reach of Islamic banking throughout Pakistan in the upcoming years. The bank places special emphasis on regions such as Khyber Pakhtunkhwa and merged areas, Gilgit-Baltistan, Sindh, and Balochistan. This expansion will be accomplished through the establishment of fully-fledged Islamic banking branches, as well as the integration of Islamic banking windows (IBWs).”