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In The Name Of ALLAH The Most Gracious,

Beneficial & Most Merciful.

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Romana Nargus

(A1) -462Sehrish Jabeen

(A2) -452

Rida Farooq Khan

(B3) -467

Asma Sadia Gul(B4) -451

MBA (Banking & Finance)

Session 2009-2011

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STATE BANKOF PAKISTAN

Headquarters Karachi, Pakistan.

Established 1947

Governor Syed Salim Raza

Central Bank of Pakistan.

Currency Pakistani Rupee.

Website www.sbp.org.pk

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History

Before independence on August 14 ,1947the Reserve Bank of India (Central Bank of India)was the central bank for what is now Pakistan.

On December 30, 1948 the BritishGovernment's Commission distributedthe Bank of India's reserves between Pakistan and india30 % for Pakistan and 70 % for India.

InMay, 1948 Muhammad Ali Jinnah (Founder of Pakistan) took steps toestablish the State Bank of Pakistan immediately. These were implemented inJune 1948, and the State Bank of Pakistan commenced operation on July 1,1948.

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Constitution

Order 1948

Regulating issue of notes

Keeping reserves for monetary stability

1956Act of State Bank of Pakistan

Regulating issue of notes

Keeping reserves for monetary stability

Foster the growth of credit system of Pakistan

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Establishment

As soon as may be after the commencement ofthis Act steps shall be taken to establish,

in accordance with the provisions of this Act,a bank to be called the State Bank of Pakistanor Bank Daulat-e-Pakistan

The bank shall be a body corporate by the name of State Bank ofPakistan or Bank Daulat-e- Pakistan, having perpetual succession and a

common seal, and shall by the said name sue and be sued.

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Head Quarter and Offices

Head Quarter at Karachi

Sixteen local offices at:

Hyderabad, Multan, Faisalabad, Sukkar, Quetta, Lahore, Peshawar, Gujranwala, D.I khan, Sialkot, Muzaffarabad, Rawalpindi, Bahawalpur, Islamabad.

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Power ofState Bank ofPakistan

Power increased in 1956,1974 and 1997 act of S.B.P

Complete autonomy to:

Regulate banking

Issue notes

Stabilizing exchange rates

Promote investment

Control inflation

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Share Capital

Original share capital 3Crore

51% by central Govt.

49% by private sector

Nationalized in 1974

By Central

Govt By PrivateGovt

51%49%

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Management

Chief Executive is Governor (for Threeyears)

One or more Deputy Governor may be appointed bythe Federal Government (not exceeding Fiveyears)

President of Pakistan appoint the Governor of S.B.P.

Because S.B.P is an autonomous body .

Decision has to be taken independently.

Present Governor of state bank of Pakistan

Dr. Salim Raza

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According to Section-18 of the State Bank of Pakistan Act 1956

To advances money on the mortgage on the security of immovableproperty or documents of titles relating thereto:

To become the owner of any immovable property except when

ownership is necessary for the use of the bank To make unsecured advances or loan.

To draw or except bills payable otherwise then on demand.

Advances/Loans

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According to Section-9A of the State Bank of Pakistan Act 1956SBP has empowered to formulate and evaluate policies to promote and expansion of banking

and credit facilities in Pakistan.

According to Section-22of the State Bank of Pakistan Act 1956SBP is prepared to buy or rediscount the bill of exchange or other commercial papers eligible

for purchases.

And prescribed that State Bank shall make the bank rate and published from time-to-time.

According to Section-17& 23of the State Bank of Pakistan Act 1956The authority to full control on the both visible and invisible payments to and from thecountry such as exchange of the business ,travels, medical treatments and education etc.As the custodian of the foreign exchange it exercises full control over the movement ofcapital from and to the country ,

It lso maintains export prices cheek on certain export commodities like cotton a and pries.

According to Section-24of the State Bank of Pakistan Act 1956SBP has the sole authority of the issues of bank notes of Pakistan

DefaultHandling Procedures

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Thank Youfor your kind

attention