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Banking Companies Ordinance, 1962

Topic Serial # Content Case Law






1 Short title, extent and commencement
2 Application of other laws not barred
3 Omitted
3 3-A Limited application of Ordinance to certain financial institutions. 3
4 Power to suspend operation of Ordinance
5 Definitions
6 Ordinance to override memorandum, articles, etc




6 Form of business in which banking companies may engage Case Law
8 Use of the word “Bank”
9 Prohibition of trading
10 Disposal of non-banking assets
11 Prohibition of employment of managing agents and restrictions on certain forms of employment
12 Restrictions on removal of records and documents
13 Requirement as to minimum paid-up capital and reserves
14 Regulation of paid-up capital, subscribed capital and authorized capital and voting rights of share-holders
15 Election of new directors
15 15-A Appointment of director by the State Bank
15 15-B Restriction on term of office of directors
15 15-C Vacation of Office
16 Restriction on commission, brokerage, discount, etc. on sale of shares
17 Prohibition of charge on unpaid capital
18 Prohibition of floating charge on assets
19 Restrictions as to payment of dividend
20 Prohibition of common directors
21 Reserve Fund
22 Cash Reserve
23 Restriction on the nature of subsidiary companies Case Law
24 Restrictions on loans and advance
25 Power of State Bank to control advances by banking companies
25 25-A Power of the State Bank to collect and furnish credit information
25 25-AA Preparation of special reports
25 25-B Recovery of certain dues of banking companies as arrears of land revenue
26 Power of State Bank to prohibit acceptance of deposits by banking companies incorporated outside Pakistan
26 26-A Deposits
27 Licensing of banking companies Case Law
27 27-A Prohibition of advertising for deposits and collection
27 27-B Disruptive union activities
28 Restrictions on opening of new, and transfer of existing place of business
29 Maintenance of liquid assets
30 Assets in Pakistan
31 Unclaimed deposits and articles of value.—(1) Where
32 Half-yearly returns and power to call for other returns and information
33 Power to publish information
33 33-A Fidelity and secrecy
33 33-B Guidelines by the State Bank
34 Accounts and balance-sheet
35 Audit
36 Submission of returns
37 Copies of Balance Sheet and Accounts to be sent to Registrar
38 Display of audited balance sheet by banking companies incorporated outside Pakistan
40 Inspection
40 40-A Responsibility of State Bank
41 Power of the State Bank to give directions Case Law
41 41-A Power of the State Bank to remove directors or other managerial persons form office—.(1) where the State Bank is satisfied tha Case Law
41 41-B Power of the State Bank to supersede Board of Directors of banking company
41 41-C Limitations
41 41-D Prosecution of directors, chief executives or other officers
42 Further powers and functions of the Bank
43 Certain provision of the Ordinance not to apply certain banking companies




43 43-A Power to call for certain information, etc Case Law
43 43-AA Special provisions
43 43-B Power to make declaration
43 43-C Consequences of a declaration under section 43B
43 43-D Deposit of cash and preservation of assets, etc
43 43-E Statement of assets and liabilities to be submitted to State Bank
43 43-F Consequential provisions for winding up, etc




44 High Court defined
45 Restriction on stay order
46 Restriction on compromise or arrangement between banking companies and creditors
47 Powers of State Bank to apply to Federal Government for suspension of business by a banking company and to prepare scheme of reconstruction or amalgamation
48 Procedure for amalgamation of banking companies
49 Winding up by High Court
50 Court Liquidator
51 State Bank to be official liquidator
52 Application of Companies Act to Liquidators
53 Stay of proceedings
54 Preliminary report by official liquidator
55 Notice to preferential claimants and secured and unsecured creditors
56 Power to dispense with meetings of creditors, etc
57 Booked depositors’ credits to be deemed proved
58 Preferential payments to depositors
59 Restriction on voluntary winding up


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