Can You Discuss The Growth Of Banking In Pakistan?

At the time of independence there were only two Pakistani banks, that is Habib bank and Australasia bank. At that time, Pakistan had 631 branches of scheduled banks and 411 of non- scheduled banks. The total deposits of Pakistan banks were Rs. 800 million and advances were 198 million. The non- scheduled banks number reduced from 411 to 106 over the same period.

The mass scale with withdrawal of deposits closure of branches and migration caused a dead lock in the banking business in Pakistan.Keeping in view the above situation government of Pakistan took various steps to provide all kinds of facilities to the non-Muslim bankers for restoring normal banking facilities but response was not encouraging.

After independence it was not possible for Pakistan to set up The Central Bank immediately. The Reserve Bank of India acted as a Central Bank of Pakistan till 30th September, 1948. But it could not protect the interests of Pakistan.
To remove the financial difficulties and to establish sound banking system govt. established the State Bank on 1st July, 1948. In the development of banking system it played very important role as a Central Bank of the country.
New branches were opened in the country with the development of banking system. These banks also extended their branches to foreign countries.