Impact of credit and operational risks on the profitability of bank of Punjab (2006-2008)

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.