The State Bank of Pakistan has granted the Bank of Punjab in-principle approval to establish an Overseas Wholesale Banking Unit in Bahrain. The decision advances BOP’s international expansion plan, but the proposed operation cannot begin business yet.
SBP Clears First Regulatory Stage
BOP disclosed the approval to the Pakistan Stock Exchange on August 6. It said the SBP issued its approval through a letter dated August 5, 2026.
The bank must still obtain every required clearance in Pakistan and Bahrain. It must also meet all laws, rules and conditions imposed by the regulators.
BOP said the unit would start operations only after two further steps. It needs a No Objection Certificate from the Central Bank of Bahrain. It must also secure the required banking licence from the SBP.
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“The Bank shall keep the Exchange informed of any further material developments,” BOP said in its regulatory filing.
The approval follows a plan first announced in July 2024. BOP’s board approved a Wholesale Banking Unit in Bahrain and a representative office in the United Arab Emirates.
The earlier notice said directors “have approved the business plan to establish a WBU in the Kingdom of Bahrain.” Both projects remained subject to regulatory consent.
The August 2026 disclosure addressed only the Bahrain unit. It provided no fresh update on the proposed UAE office.
Wholesale Unit Targets Large Clients
A wholesale banking unit serves large organisations rather than ordinary retail customers. Its clients may include corporations, financial institutions, government bodies and major commercial groups.
Such units can support trade finance, corporate lending, treasury services and cross-border payments. BOP has not disclosed the unit’s capital, staffing, launch date or planned products.
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The expansion would give BOP an operational banking presence in Bahrain after regulators complete licensing. It could help the bank serve Pakistani businesses involved in Gulf trade and investment.
The Punjab government holds a majority shareholding in BOP. PSX data shows the bank earned Rs15.94 billion after tax in 2025. Profit after tax reached Rs4.77 billion in the first quarter of 2026.
Bahrain Approval Still Required
Bahrain hosts an established Gulf financial market. Central Bank of Bahrain data lists 54 wholesale banks and 83 banks overall. The banking system held assets of $254.5 billion at the end of 2025.
Financial corporations contributed 17.2 percent to Bahrain’s constant-price gross domestic product in 2024. The CBB acts as the kingdom’s sole financial regulator and licenses conventional and Islamic banks.
The SBP approval marks an important step, not the final launch. BOP must complete the CBB process, receive the required NOC and satisfy both regulators.
Until those approvals arrive, the Bahrain unit cannot accept business or begin operations. BOP said it would report further material developments to the PSX under disclosure rules.
