LAHORE, Aug 20: The Punjab government has increased the authorized capital of Bank of Punjab (BoP) to Rs10bn from its current level of Rs2 billion. The authorized capital of the bank has been raised through an ordinance amending the BoP Act, 1989.

Through another amendment to the act, the designation of the managing director of the bank has been changed to that of the president.

BoP was established by the provincial government headed by the then Chief Minister Nawaz Sharif in 1989 through an act of the Punjab Assembly. At that time, the provincial government was at loggers head with the federal government of the then Prime Minister Benazir Bhutto.

At present the bank has 266 branches — 26 were opened during the last couple of years — all across the country except for Balochistan.

The bank’s current paid-up capital is Rs2 billion, which its officials say would be raised to Rs6 billion by 2007 to meet the international requirements. BoP has become one of the most profitable banks in the country in the last couple of years and its after tax profit at the end of 2004 stood at Rs1.3 billion.

The BoP’s board is scheduled to meet on August 27 to approve un-audited accounts of the bank.