Historical background of national bank of pakistan

HISTORICAL BACKGROUND OF NATIONAL BANK OF PAKISTAN

National Bank of Pakistan was established in November 20,1949 under the National Bank of Pakistan ordinance dated November 08,1949 it is a semipublic commercial bank. The primary objective of the setting of National Bank of Pakistan was the purchase jute from the growers in the former East Pakistan and also to perform the commercial banking function sin the country. The bank is also authorized to act as an agent and trustee of state bank where the State Bank of Pakistan has no own right and at the same time a trustee of public finance.

It started functioning from November 20 the same year, the said ordinance begins with preamble, which say: “whereas an emergency has arisen which renders it necessary to extend banking facilities generally and also to provide credit fro agriculture and agriculture produce”. Because of the crisis situation that had developed with regards to financing of jute trade the normal procedure of through the promulgation of an ordinance. The bank commenced business at six important jute centers east Pakistan jute crop. Karachi and Lahore offices were opened in December.

National Bank of Pakistan was different in more than one way from other banks in the country. Because of the crisis situation that developed in September 1949. The normal procedure of establishing a banking company under the company’s law was set aside and National Bank of Pakistan was established through the promulgation of an ordinance right from its inception. The board of director of National Bank of Pakistan was duly represented by government interest. The new bank received liberal advances from financing jut and cotton trade in the initial years of existence.

It is now the biggest financial institution with total assets lying over Rs. 270 billion. The bank is the highest financier of Rs. 35 billion in agriculture and commodity operation sector.

National Bank of Pakistan has celebrated its 50 th anniversary on November 9,1999 which is a bench mark year in the history of this organization in the sense that a great deal has a changed in the bank since the passage of National Bank of Pakistan ordinance of November, 08,1949 

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