Among the contemporaries, Imperial bank of India was the largest Indian Bank whichhad started its operations in 1919 which was discharging the role of a commercial banksas well as the Central Bank for India until an independent Central Bank i.e. Reserve Bank of India was established in 1935. However, since the Imperial Bank had the largestnetwork of its branches all over India, it continued to play its role as a subsidiary of theReserve Bank of India. In the Muslim majority areas which was later on became the partof Pakistan, small branches of Indian banks were operating and soon after creation of Pakistan they shifted their branches and headquarters to India. At the time of independence, two major banks including Punjab National Bank at Lahore and ComilaBanking Corporation were working in the then East Pakistan. This trend was so obviousthat the total number of bank offices between June 30, 1918 and August 14, 1947 werereduced from 631 to 195 only. During the early part of 1949 the number of branches of Imperial Bank of India in Pakistani areas was more than of Habib Bank. In the early daysof Pakistan, the government worked hard left no stone unturned to establish andstrengthen the banking system in Pakistan. These efforts resulted in the establishment of State Bank of Pakistan which was inaugurated by Quaid-e-Azam on July 1, 1948. Quaid-e-Azam flewed from Quetta to Karachi specially to grace the occasion. Originally theState Bank was scheduled to be established in September 1948. Zahid Hussain, who wasthe first Governor of the State Bank, devoted all his time and energy to streamline theworking of the State Bank. In normal situation, the Central Bank of a country is onlyestablished when the commercial banking start working on sound footings. But thecircumstances forced the government to establish Central Bank and the task of stabilizingthe commercial banking was also assigned to the State Bank, which it really did.
Post Graduate College Of Commerce Sargodha