Bank of Punjab president gets one-year extension

Finance Dept to issue a notification in a couple of days.

LAHORE: The Punjab government has extended for one year the contract of outgoing Bank of Punjab President Naeemuddin, whose five-year term ended on September 23, The Express Tribune has learnt.

Naeemuddin has been re-appointed according to Section 11 of the Bank of Punjab Act 1989.

“The Finance Department will issue a notification in this regard in a couple of days,” said Punjab Finance Secretary Jehanzaib Khan while talking to The Express Tribune. “We want continuity of the policy and avoid any disruption in banking policy,” Khan added.

Naeemuddin was placed at the helm of affairs for five years on September 23, 2008. “He was offered a pay package of Rs2 million to head the provincial bank,” an official of the Finance Department said.

Following the end of five-year term, the Finance Department sent a summary to the chief minister, seeking approval for one-year extension in the contract. The approval came two days ago and a notification will be issued shortly.

During the one-year extension, the Punjab government will discuss the appointment of a regular president of the bank with the State Bank of Pakistan, he added.

The Punjab government established the Bank of Punjab in 1989 and it was given the status of scheduled bank in 1994. The bank, with a network of more than 300 branches at all major business centres across the country, provides all types of banking services such as local currency deposits, foreign currency deposits by clients, remittances and advances to business, trade, industry and agriculture.

The Punjab government holds 51% shares in the bank and the remaining 49% are held by individuals, companies and foreign investors.

First Punjab Modaraba, a wholly owned subsidiary of the Bank of Punjab, was established in 1992 and was being managed by the Punjab Modaraba Services (Private) Limited.

Published in The Express Tribune, September 27^th, 2013.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.