THE BANK OF PUNJAB

INTERIM CONDENSED BALANCE SHEET

AS AT SEPTEMBER 30, 2008
(Un-audited) (Audited)
September 30, December 31,
Note 2008 2007
(Rupees in '000')
ASSETS

Cash and balances with treasury banks 14,198,844 14,210,302

Balances with other banks 1,179,767 1,927,662
Lendings to financial institutions 7 1,133,333 2,450,000
Investments 8 30,048,070 73,461,695
Advances 9 137,643,014 133,893,585
Operating fixed assets 10 3,423,099 3,252,759
Deferred tax assets 11 5,267,357 -
Other assets 7,506,581 5,778,192

200,400,065 234,974,195
LIABILITIES

Bills payable 1,665,993 937,647

Borrowings 12 20,638,995 17,842,915
Deposits and other accounts 13 163,440,704 191,968,909
Sub-ordinated loans - -
Liabilities against assets subject to finance lease 33,441 40,321
Deferred tax liabilities - 2,205,530
Other liabilities 3,676,865 2,983,079

189,455,998 215,978,401

NET ASSETS 10,944,067 18,995,794

REPRESENTED BY

Share capital 14 5,287,974 4,230,379

Reserves 7,427,232 7,427,232
Unappropriated profit (1,926,671) 3,452,842

10,788,535 15,110,453

Surplus on revaluation of assets - net of deferred tax 15 155,532 3,885,341

10,944,067 18,995,794
-
Contingencies and commitments 16

The annexed notes from 1 to 21 form an integral part of these interim condensed financial statements.

______________
Chairman President Director Director
THE BANK OF PUNJAB
INTERIM CONDENSED PROFIT AND LOSS ACCOUNT (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2008

Quarter ended Period ended Quarter ended Period ended

September 30, September 30, September 30, September 30,
Note 2008 2008 2007 2007
(Rupees in '000')

Mark-up / return / interest earned 4,616,535 14,322,085 4,702,235 13,077,058

Mark-up / return / interest expensed 4,397,100 12,128,842 3,759,852 10,182,440
Net mark-up / return / interest income 219,435 2,193,243 942,383 2,894,618

Provision against non-performing loans and advances - net 4,395,672 12,032,376 110,151 391,518
(Reversal of provision) / provision for diminution in the value of investments - (185) - 24,394
Bad debts written off directly - - 66 149
4,395,672 12,032,191 110,217 416,061
Net mark-up / interest income after provisions (4,176,237) (9,838,948) 832,166 2,478,557

NON MARK UP / INTEREST INCOME

Fee, commission and brokerage income 101,339 407,428 109,379 444,833
Dividend income 1,412,457 1,852,922 1,737,828 1,793,427
Income from dealing in foreign currencies 129,489 339,613 110,087 246,249
Gain on sale and redemption of securities - 733,787 53,382 778,167
Unrealized (loss)/gain on revaluation of investments classified
as held for trading - - (12,829) (8,397)
Other income 137,062 428,641 120,646 438,882
Total non mark-up / interest income 1,780,347 3,762,391 2,118,493 3,693,161
(2,395,890) (6,076,557) 2,950,659 6,171,718

NON MARK UP / INTEREST EXPENSES

Administrative expenses 686,141 1,856,304 510,308 1,522,048
Other provisions / NIT units - - - (130,000)
Other charges 34,658 107,346 589 996
Total non mark-up / interest expenses 720,799 1,963,650 510,897 1,393,044

PROFIT / (LOSS) BEFORE TAXATION (3,116,689) (8,040,207) 2,439,762 4,778,674

Taxation
- Current 18 119,388 786,207 169,493 467,148
- Prior - 1,052,000 - -
- Deferred (1,538,486) (5,552,317) 35,116 251,541
(1,419,098) (3,714,110) 204,609 718,689

PROFIT / (LOSS) AFTER TAXATION (1,697,591) (4,326,097) 2,235,153 4,059,985

Earnings per share (Rupees) - Basic and Diluted 19 (3.21) (8.18) 4.23 7.68

The annexed notes from 1 to 21 form an integral part of these interim condensed financial statements.

Chairman President Director Director

THE BANK OF PUNJAB
INTERIM CONDENSED CASH FLOW STATEMENT (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2008
Period ended Period ended
September 30, September 30,
2008 2007
( Rupees in '000' )
CASH FLOWS FROM OPERATING ACTIVITIES

(Loss) / Profit before taxation (8,040,207) 4,778,674

Less: Dividend income (1,852,922) (1,793,427)
(9,893,129) 2,985,247
Adjustments for non-cash items
Depreciation /Amortization 160,911 115,714
Provision against non-performing advances 12,032,376 391,518
( Reversal ) / provision for diminution in value of investments (185) 24,394
Provision against lendings to financial institutions - (130,000)
(Gain) on sale of securities (733,787) (769,770)
(Gain) / Loss on sale of fixed assets (825) 471
Provision for workers welfare fund 36,260 -
Other provisions / direct write offs - 149
11,494,750 (367,524)
1,601,621 2,617,723
(Increase) / decrease in operating assets
Lendings to financial institutions 1,316,667 5,851,195
Net investment in held for trading securities - -
Advances (15,781,805) (19,527,254)
Other assets (excluding advance taxation) (1,728,389) (772,826)
(16,193,527) (14,448,885)
Increase / (decrease) in operating liabilities
Bills payable 728,346 265,686
Borrowings from financial institutions 2,674,565 (677,282)
Deposits and other accounts (28,528,205) 53,691,232
LiabilitiesNIT units (6,880) (14,335)
Other liabilities (excluding current taxation) 657,526 (61,868)
(24,474,648) 53,203,433
Income tax paid (1,553,247) (1,176,690)

Net cash flows from operating activities (40,619,801) 40,195,581

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from held to maturity securities-Net 157,346 -

Net investment in available for sale securities 38,054,912 (40,316,524)
Dividend income 1,852,922 1,788,445
Investment in operating fixed assets (327,072) (1,533,576)
Sale proceeds of property and equipment disposed off 825 230
Net cash flows from investing activities 39,738,933 (40,061,425)

CASH FLOWS FROM FINANCING ACTIVITIES

Receipts/ (Payments) of sub-ordinated loan - -
Issue of share capital - -
Dividend paid - -
Net cash flows from financing activities - -

Increase in cash and cash equivalents (880,868) 134,156

Cash and cash equivalents at beginning of the period 16,137,964 18,276,948

Cash and cash equivalents at end of the period 15,257,096 18,411,104

Cash and cash equivalents:

Cash and balances with treasury banks 14,198,844 14,254,840
Balances with other banks 1,179,767 3,656,264
Money at call lending - 500,000
Overdrawn nostro accounts (119,075) -
Other overdrawn bank accounts (2,440) -
15,257,096 18,411,104

-
The annexed notes from 1 to 21 form an integral part of these interim condensed financial statements.

Chairman President Director Director

THE BANK OF PUNJAB
INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2008
Capital Reserves Revenue Reserves
Share Statutory Share For issue of General Un appropriated Total
capital premium bonus shares Profit
( R u p e e s in t h o u s a n d )

Balance as at January 01, 2007 2,902,490 2,004,000 37,882 - 2,495,350 3,219,246 10,658,968
Transfer to reserve for issue of bonus shares (Final December 2006) - - - 943,309 - (943,309) -
Issue of bonus shares (Final December 2006) 943,309 - - (943,309) - - -
Transfer to reserve for issue of bonus shares (Interim June 2007) - - - 384,580 - (384,580) -
Transfer from surplus on revaluation of fixed assets
to unappropriated profit - net of tax - - - - - 4,399 4,399
Profit for the period ended September 30, 2007 - - - - - 4,059,985 4,059,985

Balance as at September 30, 2007 3,845,799 2,004,000 37,882 384,580 2,495,350 5,955,741 14,723,352
Issue of bonus shares (Interim June 2007) 384,580 - - (384,580) - - -
Transferred to general reserve - - - - 2,000,000 (2,000,000) -
Transferred to statutory reserve - 890,000 - - - (890,000) -
Transfer from surplus on revaluation of fixed assets
to unappropriated profit - net of tax - - - - - 1,467 1,467
Profit for the period October-December 2007 - - - - - 385,634 385,634

Balance as at December 31, 2007 4,230,379 2,894,000 37,882 - 4,495,350 3,452,842 15,110,453

Transfer to reserve for issue of bonus shares - - - 1,057,595 - (1,057,595) -

Issue of bonus shares 1,057,595 - - (1,057,595) - - -
Transfer from surplus on revaluation of fixed assets
to unappropriated profit - net of tax - - - - - 4,179 4,179
Loss for the period ended September 30, 2008 - - - - - (4,326,097) (4,326,097)

Balance as at September 30, 2008 5,287,974 2,894,000 37,882 - 4,495,350 (1,926,671) 10,788,535

The annexed notes from 1 to 21 form an integral part of these interim condensed financial statements.

Chairman President Director Director

THE BANK OF PUNJAB
NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS (UN-AUDITED)
FOR THE PERIOD ENDED SEPTEMBER 30, 2008

1. STATUS AND NATURE OF BUSINESS

The Bank of Punjab (the Bank) was constituted pursuant to The Bank of Punjab Act, 1989. It was given
the status of a scheduled bank by the State Bank of Pakistan (SBP) on September 19, 1994. It is
principally engaged in commercial banking and related services with its registered office situated at 10-B,
E/2, Gulberg III, Lahore. The Bank has 272 branches (December 31, 2007: 272 branches) in Pakistan and
Azad Jammu and Kashmir at the period end. The Bank is listed on Lahore, Karachi and Islamabad Stock
Exchanges. The majority shares of the Bank are held by the Government of Punjab.

2. BASIS OF PRESENTATION

In accordance with the directives of the Federal Government regarding the shifting of the banking system
to Islamic modes, the State Bank of Pakistan has issued various circulars from time to time. Permissible
forms of trade-related modes of financing include purchase of goods by banks from their customers and
immediate resale to them at appropriate mark-up in price on deferred payment basis. The purchases and
sales arising under these arrangements are not reflected in these financial statements as such but are
restricted to the amount of facility actually utilized and the appropriate portion of mark-up thereon.

The disclosures made in these interim financial statements have been limited based on the format
prescribed by the State Bank of Pakistan vide BSD Circular letter No. 2 dated 12 May, 2004, International
Accounting Standard 34 - Interim Financial Reporting and should be read in conjunction with the annual
financial statements of the Bank for the year ended 31 December, 2007.

3. STATEMENT OF COMPLIANCE

These interim condensed financial statements have been prepared in accordance with approved
accounting standards as applicable to banks in Pakistan. Approved accounting standards comprise of
such International Financial Reporting Standards (IFRS) issued by the International Accounting Standards
Board as are notified under the Companies Ordinance, 1984, the requirements of the Companies
Ordinance, 1984, The Bank of Punjab Act, 1989, the Banking Companies Ordinance, 1962, or directives
issued by Securities and Exchange Commission of Pakistan and the State Bank of Pakistan. Wherever
the requirements of the Companies Ordinance, 1984, The Bank of Punjab Act, 1989, the Banking
Companies Ordinance, 1962, or directives issued by the Securities and Exchange Commission of
Pakistan and the State Bank of Pakistan differ with the requirements of IFRS, the requirements of the
Companies Ordinance, 1984, The Bank of Punjab Act, 1989, the Banking Companies Ordinance, 1962, or
the requirements of the said directives prevail.

The State Bank of Pakistan as per BSD Circular No. 10, dated 26 August, 2002 has deferred the
applicability of IAS-39 ‘Financial Instruments: Recognition and Measurement’ and IAS-40 ‘Investment
Property’ for banking companies till further instructions. Accordingly, the requirements of these standards
have not been considered in the preparation of these interim condensed financial statements. However,
investments have been classified and valued in accordance with the requirement of various circulars
issued by State Bank of Pakistan.
 THE BANK OF PUNJAB
4. ESTIMATES

The preparation of interim financial statements requires managements to make judgment, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets and
liabilities, income and expenses. Actual results may differ from these estimates.

The basis for accounting estimates adopted in the preparation of these interim condensed financial
statements are the same as those applied in the preparation of the annual financial statements of the

5. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The same accounting policies and methods of computation are followed in the interim condensed financial
statements as compared with the most recent annual financial statements.

6. FINANCIAL RISK MANAGEMENT

The financial risk management objectives and policies adopted by bank are consistent with those
disclosed in the annual financial statements of the bank for the year ended 31 December 2007.
 THE BANK OF PUNJAB

(Un‐audited) (Audited)
September 30 December 31,
2008 2007
(Rupees in ʹ000ʹ)

7. LENDINGS TO FINANCIAL INSTITUTIONS

Call money lendings                      ‐         1,000,000

Repurchase agreement lendings (Reverse Repo)               500,000                   ‐
Certificates of Investment               333,333            500,000
Placements               300,000            950,000
           1,133,333         2,450,000

8. INVESTMENTS
(Un‐Audited) (Audited)
September 30, 2008 December 31, 2007
Held by Given as Held by Given as
Note bank collateral Total bank collateral Total
(Rupees               in               ʹ000ʹ)
INVESTMENTS BY TYPES

Available‐for‐sale securities

Pakistan Market Treasury Bills                       37,996            9,202,864           9,240,860         32,901,100          11,831,304       44,732,404
Pakistan Investment Bonds                     734,858              734,858              732,097
                       ‐            732,097
Ordinary shares of listed companies and modarabas                     194,024              194,024              147,920
                       ‐            147,920
Preference shares of listed companies                     235,908              235,908              210,908
                       ‐            210,908
Ordinary shares of unlisted companies                        25,000                25,000                25,000
                       ‐              25,000
NIT units 8.1                  4,637,308           4,637,308           4,417,738                      ‐         4,417,738
Investment in funds                11,250,642               250,000         11,500,642         12,317,033                      ‐       12,317,033
Term Finance Certificates (TFCs)                  1,334,126               179,928           1,514,054           3,109,818                      ‐         3,109,818

Held‐to‐maturity securities 8.2

Pakistan Investment Bonds                  2,829,474           2,829,474           2,886,233                      ‐         2,886,233

WAPDA Bonds                           400                     400               100,987                      ‐            100,987

Subsidiary

Punjab Modaraba Services (Private) Limited                     164,945              164,945              164,945

                        ‐            164,945

Total investments at cost                 21,444,681            9,632,792         31,077,473         57,013,779          11,831,304       68,845,083
Less: Provision for diminution in value of investments                        6,340                       ‐                  6,340                  6,525
                 6,525
Investments ‐ net of provisions                21,438,341            9,632,792         31,071,133         57,007,254          11,831,304       68,838,558
Surplus on revaluation of available‐for‐sale
securities                (1,023,063)                       ‐          (1,023,063)           4,623,137                       ‐         4,623,137

Total investments at market value                20,415,278            9,632,792         30,048,070         61,630,391          11,831,304       73,461,695

8.1 This include 134,853,813 units in respect of which the Goverenment of Pakistan (GoP) had issued a Letter of Comfort (LoC) dated June 20, 2006 stating that on Bankʹs willingness to continue holding
the units upto June 30, 2007 from the date of LoC, NIT will be facilitated to redeem the units at Rs.13.70 per unit. Pursuant to the NITʹs letter No. MDNIT/191/2007 date February 23, 2007, the Bank
had opted for option to enter into an agreement with NIT for staggered redemption spread over a period of several years.The GoP vide letter No. F.4(2)INV.III/2000 dated December 31, 2007 has
extended the Loc upto December 31, 2008. However, there has been no further development on the matter of redemption of NIT Units.

8.2 The market value of securities classified as ʹheld to maturity ʹ amounted to Rs.2,202,387 thousand (December 31,2007 ; Rs. 2,570,923 thousand) 
 THE BANK OF PUNJAB

(Un‐audited) (Audited)
September 30 December 31,
Note 2008 2007
(Rupees in '000')

9. ADVANCES
Loans, cash credits, running finances etc- in Pakistan 9.1 143,753,911 125,685,191

Net investment in finance lease- in Pakistan 4,080,767 4,254,233

Repurchase agreement lendings (Reverse Repo) 9.2 1,825,000 -
Financing under Continuous Funding System - 769,813
Bills discounted and purchased ( excluding treasury bills )
Payable in Pakistan 1,487,352 3,730,205
Payable outside Pakistan 1,159,872 2,090,561
2,647,224 5,820,766
152,306,902 136,530,003

Provision for non-performing advances - Specific 9.3 (10,959,803) (2,500,058)

- General 9.4 (3,704,085) (136,360)
(14,663,888) (2,636,418)
137,643,014 133,893,585

9.1 Advances include Rs. 8,403,447 thousand due from three companies which, upon receipt of Rs. 450,000 thousand during the period, were restructured
under revised arrangements for a period of twelve years including three years grace period, in place of seven years including two years grace period.
The management, without prejudice to the Bank's claim against these companies, intends to make provision against these advances based on the
examination currently being carried out with the assistance of consultants in respect of recoverablity of the same. However, as the matter of prudance a
provision of Rs. 2,500,000 thousands has been made.

9.2 This represents a reverse repo transaction having maturity of 6 months and carries markup rate @ 12.5 % per annum with a non-financial institution.

9.3 Advances include Rs.18,904,786 thousand (2007: Rs.3,349,891thousand ) which have been classified as non-performing in various categories as
detailed below:

Category of classification Domestic Overseas Total Provision Provision

Required Held
(Rupees in '000')

Other assets especially mentioned 209,910 - 209,910 - -

Substandard 6,551,428 - 6,551,428 1,628,460 1,628,460
Doubtful 5,624,110 - 5,624,110 2,812,060 2,812,060
Loss 6,519,338 - 6,519,338 6,519,283 6,519,283
18,904,786 - 18,904,786 10,959,803 10,959,803

(Un‐audited) (Audited)

September 30 December 31,

2008 2007
(Rupees in '000')
9.4 General provision against
- Lease portfolio acquired under settlement agreement 150,000 65,000
- Consumer financing 9.4.1 54,085 71,360
- Loans and advances 1,000,000 -
- Others 9.1 2,500,000 -
3,704,085 136,360

9.4.1 This represents provision against consumer financing portfolio as required by the Prudential Regulations issued by the State Bank of Pakistan.
 THE BANK OF PUNJAB

(Un‐audited) (Audited)
September 30 December 31,
Note 2008 2007
(Rupees in '000')

10. OPERATING FIXED ASSETS

Capital work in progress 208,626 1,129,088

Property and equipment 3,181,956 2,105,488
Intangible assets 32,517 18,183
3,423,099 3,252,759

11. DEFERRED TAX ASSET

Deferred tax liabilities arising in respect of

-Accelerated depreciation (229,904) (518,889)

-Revaluation surplus - (1,719,309)

Deferred tax assets arising in respect of

-Revaluation surplus 201,261 -

-Provision for loan losses 5,296,000 32,668
5,267,357 (2,205,530)

12. BORROWINGS
Secured
Borrowings from State Bank of Pakistan under
-Export refinance scheme 4,258,347 4,014,026
-Long term finance export oriented projects 1,718,380 1,985,393
Repurchase agreement borrowings 12.1 13,890,753 10,834,270
19,867,480 16,833,689
Unsecured
Call borrowings 650,000 750,000
Overdrawn nostro accounts 119,075 256,388
Other overdrawn bank accounts 2,440 2,838
20,638,995 17,842,915

12.1 Markup is payable on borrowings under repurchase agreement is rangeing from 12.25% per annum to 15.50% per annum ( 2007 : 8.88% per annum).

13. DEPOSITS AND OTHER ACCOUNTS

Customers

Fixed deposits 65,581,989 71,545,152

Savings deposits 56,751,165 65,394,990
Current accounts - non-remunerative 18,215,737 22,197,621
Sundry deposits, margin accounts etc. 1,685,795 1,398,852
142,234,686 160,536,615
Financial institutions

Remunerative 21,177,250 31,117,878

Non-remunerative 28,768 314,416
21,206,018 31,432,294

163,440,704 191,968,909
 THE BANK OF PUNJAB

(Un‐audited) (Audited)
SEPTEMBER 30, December 31,
Note 2008 2007
(Rupees in '000')

13.1 Particulars of deposits

In local currency 161,199,762 190,135,032

In foreign currencies 2,240,942 1,833,877

163,440,704 191,968,909

14. SHARE CAPITAL

(Un‐audited) (Audited) (Un‐audited) (Audited)
SEPTEMBER 30, December 31, SEPTEMBER 30, December 31,
2008 2007 2008 2007
(No of Shares) (Rupees in '000')

Authorized Capital
1,000,000,000 1,000,000,000 Ordinary shares of Rs. 10/- each 10,000,000 10,000,000

Issued , Subscribed and paid up capital

19,333,340 19,333,340 Ordinary shares of Rs. 10/- each paid in cash 193,333 193,333

Bonus shares
509,464,036 403,704,561 Issued as bonus shares 5,094,641 4,037,046

528,797,376 423,037,901 5,287,974 4,230,379

15. SURPLUS ON REVALUATION OF ASSETS

Surplus on revaluation of fixed assets-net of tax 919,575 921,504

Surplus on revaluation of securities-net of tax 15.1 (764,043) 2,963,837
155,532 3,885,341

15.1 Surplus/(Deficit) on revaluation of securities-net of tax

Surplus/(Deficit) on revaluation of securities (1,023,063) 4,623,137

Deferred Tax 259,020 (1,659,300)
(764,043) 2,963,837

16. CONTINGENCIES AND COMMITMENTS

16.1 Direct Credit Substitutes

These include general guarantees of indebtedness, bank acceptance guarantees and standby letters of credit serving as financial guarantees for loans
and securities issued in favor of:

Government - -
Banks and financial institutions 23,479 -
Others 6,290,569 7,425,344
6,314,048 7,425,344
16.2 Transaction related contingent liabilities

These include performance bonds, bid bonds, warranties, advance payment guarantees, shipping guarantees and standby letters of credit related to
particular transactions issued in favor of:

Government 3,016,907 274,488

Banks and financial institutions 921,842 17,217
Others 17,398,710 20,815,572
21,337,459 21,107,277
 THE BANK OF PUNJAB
(Un‐audited) (Audited)
SEPTEMBER 30, December 31,
2008 2007
(Rupees in '000')

16.3 Trade related contingent liabilities

Government 1,982,135 1,396,221

Financial institutions 38,724 58,828
Others 17,581,401 27,319,056
19,602,260 28,774,105

16.4 Other contingencies

Claims against the Bank not acknowledged as debt 1,438,764 1,425,999

16.5 Commitments for sale of securities - -

16.6 Commitments in respect of forward exchange contracts

Purchase 1,131,400 627,392

Sale 594,208 2,597,353

Call borrowing - 1,000,000

16.7 Commitments for the acquisition of operating fixed assets - 31,825

17. RELATED PARTY TRANSACTIONS

Related parties comprise associate, subsidiary, directors, key management personnel and entities in which key management personnel are office
holders / members. The Bank in the normal course of business carries out transactions with various related parties. Amounts due from and due to
related parties are shown under receivables and payables.
Punjab Modaraba Services (Private) Limited
(wholly owned subsidiary of the Bank)

Advances
Outstanding at beginning of the period - -
Made during the period 8,500 -
Repaid/matured during the period - -
Outstanding at the end of the period 8,500 -

Mark-up/return earned
Deposits in current account 410 537
First Punjab Modaraba
(Modaraba floated by the wholly owned subsidiary of the Bank)

Advances
Outstanding at beginning of the period 452,211 564,979
Made during the period 3,470,271 3,969,298
Repaid/matured during the period (3,092,794) (4,082,067)
Outstanding at the end of the period 829,688 452,210

Mark-up/return earned 74,285 30,031

Deposits in current account 2,838 1,215

Lease liability
Outstanding at beginning of the period 40,321 34,975
Lease contracts entered into during the period - 19,398
Repayments of lease rentals (6,880) (14,052)
Outstanding at the end of the period 33,441 40,321
 THE BANK OF PUNJAB

(Un‐audited) (Audited)
SEPTEMBER 30, December 31,
2008 2007
(Rupees in '000')
Bankers Avenue Co-operative Housing Society
(A co-operative society managed by key management personnel of the Bank)
Deposits in saving account 64,416 42,731
Markup paid 3,305 436
AMTEX (Private) Limited *
(Common directorship)
Advances
Outstanding at beginning of the period - 1,939,290
Made during the period - 3,931,754
Repaid/matured during the period - (2,233,175)
Outstanding at the end of the period - 3,637,869

Mark-up/return earned - 215,978

Deposits in current account - 4,876

Colony Mills Limited *

(Common directorship)
Advances
Outstanding at beginning of the period - 100,000
Made during the period - 2,336,770
Repaid/matured during the period - (386,770)
Outstanding at the end of the period - 2,050,000

Mark-up/return earned - 108,610

Deposits in current account - 175,363

Ejaz Textile Mills Limited *

(Common directorship)
Advances
Outstanding at beginning of the period - -
Made during the period - 502,375
Repaid/matured during the period - (2,500)
Outstanding at the end of the period - 499,875

Mark-up/return earned - 3,558

Ejaz Spinning Mills Limited *

(Common directorship)
Advances
Outstanding at beginning of the period - -
Made during the period - 174,618
Repaid/matured during the period - -
Outstanding at the end of the period - 174,618

Mark-up/return earned - 3,086

Chenab Limited *
(Common directorship)
Advances
Outstanding at beginning of the period - -
Made during the period - 782,386
Repaid/matured during the period - -
Outstanding at the end of the period - 782,386

Mark-up/return earned -
Transactions with Key Management Personnel / Directors
Salaries and benefits paid 21,362,063 41,023,382

In addition the Chief Executive and other executive officers are provided with Bank maintained cars.

Contribution to Employees Provident Fund 30,172 34,937

Although the Government of Punjab (GoP) holds 51% shares of the Bank (2007:51%), transactions with GoP have not been
treated as related party transactions for the purpose of this disclosure.
* Ceased to be related party during the period.
 THE BANK OF PUNJAB
18 TAXATION

During the period , the Bank recognized tax charge on provision for doubtful debts which was previously recognized as contingent liability.

19 EARNINGS PER SHARE - BASIC AND DILUTED Quarter Ended Peroid Ended Quarter Ended Peroid Ended
September September September September
30,2008 30,2008 30,2007 30,2007

Profit after taxation (Rupees in '000) (1,697,591) (4,326,097) 2,235,153 4,059,985

Weighted average number of ordinary shares in ('000) 528,797 528,797 528,797 528,797
Earnings per share - Basic and diluted (Rupees) (3.21) (8.18) 4.23 7.68

The earnings per share for the quarter and period ended September 30, 2007 have been adjusted for the effect of bonus shares issued during the
period.

20 DATE OF AUTHORIZATION FOR ISSUE

The Financial Statements were authorized for issuance on September 28, 2008 by the Board of Directors of the Bank.

21 GENERAL

Figures have been rounded off to the nearest thousand.

Chairman President Director Director