Bank of Punjab to sell 51% of its stake
February 17, 2008Punjab Governor, Lieutenant General Khalid Maqbool (Retd) has issued an ordinance, allowing the sale of 51 percent shares of Bank of Punjab to a strategic investor…With a network of 272 branches, Bank of Punjab has a balance-sheet size of Rs 240 billion. With deposits touching Rs 200 billion and advances Rs 130 billion, its share closed at Rs 96.70 per share on Friday last.
Local banks in 2007-08 have been sold at around five times their break-up value. Bank of Punjab break-up value stands at between Rs 40 and 45 per share. As such, Punjab government should be able to fetch over Rs 45 billion from the sale transaction to a strategic investor. Both the federal government and the State Bank of Pakistan have encouraged and backed the privatisation of the provincial bank in order to enable it compete with other private banks more effectively…. Aaj News
