Bank of Punjab : BOP | The Bank of Punjab - Transmission of Annual Report for the Year Ended December 31, 2021

GROWTH WITH EMPATHY

Nurturing Prosperity, Compassion, Inclusiveness

ANNUAL REPORT

2021

TABLE OF CONTENTS

ABOUT THE BANK

02 The Bank of Punjab

05 Vision Statement

07 Mission Statement

09 Values "E-time"

1 1 Credit Rating

12 Products & Services

1. Corporate Information
2. Organizational Structure

43 Board of Directors - Composition, Performance and Profile

48 Board Committees Composition and TORs

55 Shariah Advisor Board Composition and Profile

58 Management and Its Committees

CORPORATE GOVERNANCE

60 Policies and Framework

1. Board Remuneration Policy
2. Auditors' Review Report on Code of Corporate Governance
3. Statement of Compliance with Code of Corporate Governance

1. Statement of Internal Control
2. ECONOMIC REVIEW

1. PRESIDENT/CEO's REVIEW

1. DIRECTORS' REPORT

1. REVIEW REPORT BY CHAIRMAN OF AUDIT COMMITTEE

1. REPORT OF SHARIAH BOARD

ANALYSIS OF BANK'S PERFORMANCE

94 Analysis of Bank's Financial Performance

STAKEHOLDERS RELATIONSHIP

122 Code of Conduct

1. Operating & Competitive Environment
2. Strategy & Resource Allocation
3. Fair Treatment of Customers

1. COVID-19Recovery Plan Statement by Management
2. Forward Looking Statement

135 Stakeholders Relationship

137 Sustainability and Corporate Social Responsibilities

143 Notice of AGM

147 Unconsolidated Financial Statements The Bank of Punjab

261 Consolidated Financial Statements The Bank of Punjab Group

374 List of Branches and Offices	375 Pattern of Shareholding	381 Form of Proxy

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THE BANK OF

PUNJAB

The Bank of Punjab was established in 1989 under The Bank of Punjab Act, 1989 by the Government of the Punjab. The Bank was granted status of a scheduled Bank in 1994 by SBP and currently carries a vast network of 662 online branches spanned across the Country along with ATM network of 614 offering 24/7 banking services to its diverse clientele. The Bank's Head Office is located in Lahore whereas Treasury & Capital Market operations are being managed from Karachi. The Bank of Punjab is the second largest public sector bank of the Country.

Geographical breakdown of Bank's branch network as on December 31, 2021 is as under:

Province/	No. of	No. of Islamic	Total
Conventional
Territory	Branches*	Branches*
Branches*
Punjab	447	76	523
Sindh	30	6	36
Khyber PK	39	17	56
Baluchistan	8	6	14
Azad Kashmir	3	1	4
Gilgit / Baltistan	6	2	8
Federal Capital	15	6	21
Total	548	114	662

*Including Sub Branches

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662Branches & 614ATMs

24/7 BANKING SERVICES

The Government of the Punjab (GOPb), being majority shareholder and sponsor of the Bank, holds 57.47% shares of the Bank. As majority shareholder, Chairman of the Board is nominated by the Government of the Punjab from amongst official Directors. Further, in terms of section 10(3) of The Bank of Punjab Act, 1989, the Chairman shall preside over meetings of Board of Directors and shall have a casting vote, but he shall not exercise any executive authority or power. The President/CEO, besides being Executive Director, runs the affairs of the Bank in line with governing rules and regulations.

The Bank of Punjab, in order to meet business requirements of its diverse clientele, is offering all permissible products and services in line with modern banking requirements. While having multiple deposits products to cater needs of all type of depositors, the Bank has a strong footprint in the areas of Corporate & Investment, Commercial, SME, Agriculture and Consumer financing products. The Bank launched Islamic Banking operations in the year 2013 and is currently offering a wide range of Shariah compliant products and services to its valued clients through this platform, as well. Through the umbrella of Alternative Delivery Channels (ADCs), the Bank is offering 24/7 services of ATM withdrawals, Branchless Banking, SMS Banking, Mobile Banking, Phone Banking etc.

While achieving the objective of financial inclusion through its presence in remote and unbanked areas, the Bank is playing its due role in the economic growth of the Country through its various specially tailored lending products including initiatives of Government of Pakistan and Government of the Punjab such as Kamyab Jawan Scheme of Prime Minister of Pakistan, Low Cost Housing Scheme of Government of Pakistan and Punjab Rozgaar Scheme.

The Bank of Punjab has following Subsidiaries:

1. Punjab Modaraba Services Private Limited
2. First Punjab Modaraba
3. Punjab Capital Securities Private Limited

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