Abstract:
This project is mainly concerned the overall impact of
loan scandal (2006-2008) on the profitability of Bank of
Punjab. So the main consideration remained on the reasons
behind scandal’s origination and how it managed to remain
hidden from State Bank of Pakistan. The relevant prudential
regulations of State Bank of Pakistan as well as credit and
operational risks management guidelines are discussed.
Also, the history as well as current position of Pakistan
Banking industry is described in detail. The project
provides actual information about the implementation of
prudential regulations during the loan scandal period. All
the major issues at Bank of Punjab that became the source
of such mega corruption are clearly identified. After
identification of all the issues, feasible solutions and
recommendations are suggested for increasing profitability.
