Amendment in Regulation R-6 of Prudential Regulations for Corporate/Commercial Banking

BPRD Circular Letter No. 22 — October 23, 2026

The Presidents/Chief Executives All Banks/DFIs

Dear Sir,

Amendment in Regulation R-6 of Prudential Regulations for Corporate/Commercial Banking

Please refer to BPRD Circular No. 06 of 2014, BPRD Circular Letter No. 07 of 2021, and BPRD Circular Letter No. 04 of 2022, whereby revised Prudential Regulations for Corporate/Commercial Banking and subsequent amendments in Regulation R-6 of Prudential Regulations for Corporate/Commercial Banking were issued.

• It has been decided to revise Paras 1(A) and 1(B)(iv) of Regulation R-6 of Prudential Regulations for Corporate/Commercial Banking as under:

  • Acquisition of Shares/Mutual Funds:

    • Single Company Investment Limit: (i) The investment of banks/DFIs, in aggregate, in shares of any single company shall be lower of the following two limits: (a) 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed/annual audited financial statements; or, (b) 10 percent of paid-up shares of Investee Company. (ii) The investment of banks/DFIs, in aggregate, in shares/units of any single startup (including Fintech Startups), Mutual Fund, Real Estate Investment Trust (REIT) or Private Equity Fund shall be lower of the following limits, respectively: (a) Startups: 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed/annual audited financial statements or Rs. 500 million. (b) Units of Mutual Funds, REITs or Private Equity Funds: 5 percent of Tier-I Capital of the bank/DFI reported in preceding half-yearly reviewed/annual audited financial statements or 20 percent of units of any Mutual Fund/REIT/Private Equity Fund. (iii) The banks/DFIs shall have an approved policy incorporating therein an internal evaluation process for an objective analysis and assessment of their equity investment decisions, which must consider factors including, inter alia, financial standing of the bank/DFI, aggregate investment portfolio, risk appetite and expected return, level of expertise, business strategy including exit strategy etc.

    • Aggregate Investment Limits: (iv) Exposure as a result of strategic investment and investment in units of all forms of Mutual Funds and Private Equity Funds, excluding NIT units till its privatization, shall also be considered part of the aggregate investment limits specified at para (i) and (ii) above.

• All other instructions on the subject shall, however, remain unchanged.

• Please acknowledge receipt.

Yours sincerely,
Bushra Shafiq Head of Department