The State Bank of Pakistan (SBP) has granted in-principle approval to the Bank of Punjab to establish an overseas wholesale banking unit in the Kingdom of Bahrain. The approval marks an important step in the bank’s international expansion strategy.
The decision supports the Bank of Punjab plan to increase its presence in international financial markets. It also reflects the bank’s efforts to expand its services beyond Pakistan.
The latest approval follows an earlier announcement made by the bank in July 2024. At that time, the Bank of Punjab informed the Pakistan Stock Exchange (PSX) about its intention to establish a wholesale banking operation in Bahrain.
According to the disclosure submitted to the PSX, the approval is only an initial step. The project remains subject to several regulatory requirements before operations can begin.
The bank must secure all necessary approvals from authorities in both Pakistan and Bahrain. It must also comply with all applicable laws, regulations, and conditions set by the State Bank of Pakistan.
One of the key requirements is obtaining a No Objection Certificate (NOC) from the Central Bank of Bahrain. The proposed banking unit will also require a banking license from the State Bank of Pakistan before it can officially start operations.
Officials said the overseas wholesale banking unit will become operational only after all regulatory approvals have been completed. The bank must satisfy every legal and compliance requirement before launching its services in Bahrain.
The expansion is expected to strengthen the bank’s international footprint. Bahrain is considered one of the leading financial centers in the Gulf region. Establishing a wholesale banking unit there could improve business opportunities and support cross-border financial services.
The disclosure also stated that the bank will continue to follow all regulatory obligations during the approval process. It will keep the Pakistan Stock Exchange informed about any significant developments related to the project.
The State Bank of Pakistan has not announced a timeline for the completion of the remaining approval process. The bank will need to fulfill every required condition before receiving final authorization.
The move highlights the growing interest of Pakistani financial institutions in expanding into international markets. It also shows the focus on strengthening banking services for regional and international business activities.
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For now, the Bank of Punjab has received only in-principle approval. The overseas wholesale banking unit in Bahrain will begin operations only after obtaining all required regulatory clearances, including approvals from the Central Bank of Bahrain and the State Bank of Pakistan.
