A VISIT REPORT ON MANAGEMENT

STRUCTURE OF STATE BANK OF

PAKISTAN (MULTAN OFFICE)

Submitted TO: Sir ANEEL Saeed

Submitted BY: GROUP # 9

Group Leader: ALI Amir Bhatti - 43

Group Members: UMAIR Mohyiundin - 17 RAFIA Saeed - 21 ASMA Maqbool - 47

ARIF Masood - 50 KHADIJA Majeed - 53

i

PREFACE

For a student of commerce and business studies, value of experiencing practical business

field during different visits and projects is of great value, as having knowledge and

understanding of practical business field is very important, and it becomes even more

important in case of a management course. It gives more clear understanding of

management concepts as student gets a chance to see these concepts being practiced in

real. Unless and until the students experience the novelty of practical work, their

knowledge of what they study in theoretical courses remains incomplete. Students this

way also learn to work in team and get exposure to local industry. The most important

point in such activities is that the student should spend their time in a true manner and

with the spirit to learn practical orientation of theoretical concepts. This visit report is on

management practices in State of Pakistan and to be specific in its Field office in Multan.

In this report we have tried our best to state our observations and learning’s about State

Bank of Pakistan, with respect to its organization, management and departments.

ii

“Acknowledgement”

At the ou ts e t of thi s repor t whic h was mad e as a parti al ful f i l lment of course

of Mana gement. We wis h to ack no wled ge wi th s incer es t gra ti tud e to al l of thos e who

guid ed u s a nd assi s t ed u s in any way duri ng o ur vis i t and for prepara tio n of this

repor t. We would l ik e to pay our s i ncer es t tha nks to re spected S i r . A NE EL Saeed ,

who pr ovided u s this gr ea t o ppor tu ni ty to k now and u nd ers ta nd the prac tical f i e ld o f

busi ness . We are al so gra tef ul of our C om merce Departm ent , which al lowed u s to ha ve

thi s v i s i t . We ar e al so ind eb ted to fol lo wing, as they fac i l i ta t ed us in their ful l

capac i ty , a nd wi tho ut their help, i t would no t have been possi ble for us to acco mpl i s h thi s task a nd gai n so muc h ex peri enc e fro m i t ;

Humaira Babar Deputy Chief Manager, SBP (Multan)

Syed Najeem Ahmed Chief Manager, SBP (Multan)

Amir Bashir Bhatti OFFICER, SBP (Multan)

Moazam Laghari

iii

[Dedication]

“Dedicated to the hope that is still alive in our hearts for the better

future our beloved homeland - Pakistan”

iv

Table of CONTENTS

Preface _______________________________________ i

Acknowledgment _______________________________________ ii

Dedication _______________________________________ iii

Table Of contents _______________________________________ iv

Introduction _______________________________________ 1

Functions of SBP _______________________________________ 2 Field OFFICE info _______________________________________ 3 Departments of SBP _______________________________________ 4

Organizational Structure _______________________________________ 5-7

Θ Introduction & Organization Chart (SBP, PK) ________ [6]

Θ Chain of Command ________ [7]

Θ Organizational structure (SBP, Multan) ________ [8]

Management Setup of SBP _______________________________________ 8 Planning Department _______________________________________ 9-10 Communication & I.T _______________________________________ 11-12 Human Resource Department _______________________________________ 13-14 NIBAF & Training Department _______________________________________ 15 Reward Program in SBP _______________________________________ 16

Executive Summary _______________________________________ 17-18

Index of attached Documents

• Organizational Structure Detailed – SBP

• Organizational Structure – SBP Multan

• Visit Letter

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- MANAGEMENT REPORT ON STATE BANK OF PAKISTAN -

STATE BANK OF PAKISTAN The State Bank of Pakistan (SBP) is the central bank of Pakistan. After its nationalization in 1974 the scope of its functions was considerably enlarged. There are two subsidiaries of SBP namely State Bank of Pakistan-Banking Services Corporation (SBP-BSC) and National Institute of Banking and Finance (NIBAF). The Governor SBP is chairperson of Boards for both the subsidiaries.

SBP – BANKING SERVICE CORPORATION SBP-BSC (BANKING Service Corporation) came into existence after bifurcation of State Bank of Pakistan in January 2002 and since then has been working as the operational arm of SBP for currency and credit management, facilitating inter-bank settlement system, dealing in savings instruments of the government, collecting revenue and making payments for and on behalf of government and operational work relating to management of debt and foreign exchange. SBP-BSC Board comprises of all the members from the Central Board of SBP and the Managing Director of SBP-BSC.

VISION statement OF SBP - BANKING SERVICE CORPORATION

“To develop SBP into a dynamic and efficient organization equipped with

requisite technology and human resource capable of extending sustainable

support to the State Bank of Pakistan in achieving its objectives”

MISSION statement OF SBP – BANKING SERVICE CORPORATION

“To provide excellent banking and financial services to stakeholders besides

ensuring implementation of SBP policies in order to command their trust and

respect”

NIBAF – National Institute of Banking & Finance

NIBAF was established by PBC and was taken over by SBP in 1997. NIBAF is the training arm and is

responsible for design, delivery, development and evaluation of trainings.

Vision of NIBAF is “to be apex institute of Human research development in field of

Banking & Finance”

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FUNCTIONS of STATE Bank OF PAKISTAN

Like a Central Bank in any developing country, State Bank of Pakistan performs both the

traditional and developmental functions to achieve macro-economic goals.

TRADITIONAL Functions:

D The primary functions including issue of notes, regulation and supervision of the financial

system, bankers’ bank, lender of the last resort, banker to Government, and conduct of

monetary policy.

D The secondary functions including the agency functions like management of public debt,

management of foreign exchange, etc.

D Other functions like advising the government on policy matters and maintaining close

relationships with international financial institutions.

PROMOTIONAL Functions:

D Development of financial framework.

D Provision of training facilities to bankers.

D Provision of credit to priority sectors.

D Islamization of the banking system.

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FIELD OFFICES OF SBP – BSC in PAKISTAN

There are 16 FIELD Offices of SBP – BSC in total operating in different cities of Pakistan. SBP –

BSC Karachi office act as head quarter. SBP –BSC Lahore, SBP – BSC Peshawar and SBP – BSC

Quetta along with Karachi Office also issue Offices and they have authority to issue circles. List

of all field offices in different cities is given below in table:

S # FIELD OFFICE

1 SBP BSC Bahawalpur

2 SBP BSC D. I. Khan

3 SBP BSC Faisalabad

4 SBP BSC Gujranwala

5 SBP BSC Hyderabad

6 SBP BSC Islamabad

7 SBP BSC Karachi (HEAD Quarter)

8 SBP BSC Lahore

9 SBP BSC Multan

10 SBP BSC Muzaffarabad

11 SBP BSC N. N. Karachi

12 SBP BSC Peshawar

13 SBP BSC Quetta

14 SBP BSC Rawalpindi

15 SBP BSC Sialkot

16 SBP BSC Sukkur

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Departments of STATE BANK OF PAKISTAN

State bank of Pakistan is giant entity and has a very wide scope of operations which it performs

in variety of fields related to banking. For better management and efficient as well as effective

execution of these actions in different fields, State Bank of Pakistan has formed number of

departments. Each department is exclusively responsible for taking care of all activities that

belong to its department’s scope. A list of more functional departments of SBP is given below;

1) Agricultural Credit Department 2) Banking Inspection (on-site) Department 3) Strategic and Corporate Planning 4) Human Resource Department 5) Banking Policy & Regulation Department 6) Banking Surveillance Department 7) Business Support Services Department 8) Domestic Market & Management Department 9) Economic Analysis Department 10) Exchange Policy Department 11) External Relations Department 12) Financial Market Strategy & Conduct Department 13) Financial Stability Department 14) Information System & Technology Department 15) Housing Finance Department 16) Internal Audit\ Compliance Department 17) International Market and Investments Department 18) Islamic Banking Department 19) Monetary Policy Department 20) NIBAF Karachi & Islamabad 21) Off-site Supervision & Enforcement Department 22) Payment System Department 23) Research Department 24) Risk Management and Compliance Department 25) Micro Finance Department 26) SME Finance Department 27) Training and Development Department

During our visit to field office of SBP – BSC in Multan, our focus was on gathering information in reference to

Human Resource Department, Training and Development Department, Information systems Department

apart from understanding organizational and Management structure that is being practiced in State Bank of

PAKISTAN.

FOCUS of VISIT REPORT

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ORGANIZATIONAL Structure

Organizational structure of SBP is centralized, but it’s not purely centralized. There have been number of steps taken and reforms made to make structure de-centralized. So, even though currently structure is centralized but still it is flexible in nature. Here we will discuss hierarchal structure of SBP on Pakistan level and on just Field office level of Multan

Major Points about structure and Reforms: 1. Group\Team management system. 2. Monthly Meetings (Suggestions taken, Problems shared during meetings). 3. Steps taken recently to involve and invite even OG2 level employees to meetings. 4. Communication through circulars, fax and even e-mails for instant delivery of message.

ORGANIZATIONAL CHART OF STATE Bank OF PAKISTAN

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CHAIN OF COMMAND in SBP

GOVERNOR SBP CHAIRPERSON OF THE BOARD

MANAGING DIRECTOR

CHIEF MANAGERS DIRECTORS OF

(FIELD OFFICES) SBP-BSC

1. SBP BSC BAHAWALPUR

2. SBP BSC D.I.KHAN

3. SBP BSC FAISALABAD

4. SBP BSC GUJRANWALA

5. SBP BSC HYDERABAD

6. SBP BSC ISLAMABAD

7. SBP BSC KARACHI

8. SBP BSC LAHORE

9. SBP BSC MULTAN

10. SBP BSC MUZAFFARABAD

11. SBP BSC NORTH NAZIMABAD KARACHI

12. SBP BSC PESHAWAR

13. SBP BSC QUETTA

14. SBP BSC RAWALPINDI

15. SBP BSC SIALKOT

16. SBP BSC SUKKUR

1. ACCOUNTS DEPARTMENT 2. CURRENCY MANAGEMENT DEPARTMENT 3. DEVELOPMENT FINANCE SUPPORT DEPARTMENT 4. ENGINEERING DEPARTMENT 5. FOREIGN EXCHANGE OPERATIONS DEPARTMENT 6. FOREIGN EXCHANGE ADJUDICATION DEPARTMENT 7. GENERAL SERVICES DEPARTMENT 8. INTERNAL AUDIT DEPARTMENT 9. INTERNAL BANK SECURITY DEPARTMENT 10. PERSONNELMANAGEMENT DEPARTMENT 11. TRAINING & DEVELOPMENT DEPARTMENT 12. STRATEGIC PLANNING DIVISION (and ALL OTHER NEWLY ESTABLISHED DEPARTMENTS mentioned earlier)

CHAIN OF COMMAND [SBP] – FLOW CHART

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ORGANIZATIONAL STRUCTURE in SBP – BSC, Multan:

In Field office of SBP – BSC, Multan Branch, there is one C.M (Chief Manager) (OG5 grade), who controls the whole setup in Multan Branch and directly answerable to Managing director and Governor of SBP. There are four D.C.M’s (Deputy Chief Managers) (OG4) under C.M and they are responsible for their respective department in SBP – BSC, Multan.

- CHIEF Manager (1) - DEPUTY Chief Manager (5, including C.M) - Assistant Chief Manager FOR their respective divisions (12, including 4 D.C.M)

Names of 8 divisions in SBP – BSC, Multan are mentioned in below;

1. Administration Division (Admin Department)

2. Audit Division (Admin Department)

3. Foreign Exchange Operations Division (Admin Department)

4. Banking Division (Banking Department)

5. Issue and Treasury Division (Banking Department)

6. Prize Bonds Division (Banking Department)

7. Maintenance Unit (Engg.)

8. Adjudication Court (FEAD)

Two detail ORGANOGRAM charts of SBP – BSC (BANK) are shown on next pages; one is for Multan Field office and other is for SBP’s complete setup in Pakistan.

C.M (1)

(Syed NAJEEM

Ahmed)

D.C.M

1. DCM Admin

( HUMAIRA BABAR)

D.C.M

2. DCM Banking

(Muhammad AKBAR)

D.C.M

3. J.J.D (Engg.)

(Syed MASHKOOR)

D.C.M

4. J.J.D (FEAD)

(Rana RASHID)

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GOVERANCE and MANAGEMENT Setup in SBP

SBP is committed to high standards of Corporate Governance and Management. In recent years

major initiatives have been taken to improve corporate governance and management structure

at SBP. The Central Board reconstituted its committees and to make them more responsive to

changing needs of SBP. These Committees comprise of non-executive directors and

representatives from the management in order to have a comprehensive review and analysis of

various proposals before they are considered by the Board. The composition of NIBAF Board-a

subsidiary of SBP on training- was changed in order to provide an opportunity to thoroughly

deliberate upon policy issues and quality of training programs at NIBAF by appointing

prominent economists and individuals from academia.

Apart from measures at Board level, a major reorganization exercise was done at management

level to improve corporate governance and strengthen and modernize SBP. The restructuring of

SBP was critical in light of the developments which have taken place across Pakistan’s financial

markets, requiring positioning the central bank to better respond to growing emerging size,

diversity and challenges of markets, and for SBP to be at par with other regulators in the region.

The main features of restructuring were to create four distinct Clusters in SBP including Banking

Cluster, Monetary Policy & Research Cluster, Financial Markets & Reserve Management Cluster

and Corporate Services Cluster. Special Offices, reporting directly to Governor, have been

established/ strengthened to enhance Governor’s support to maintain effective oversight on

the entire organization. Many Committees have been set up to ensure integrated and

transparent approach to provide policy framework and ensure effective monitoring of core

central banking as well as corporate services functions in the area of Monetary Policy, Risk

Management, Investment, Human Resources and Corporate Strategy. To support the entire

restructuring exercise, SBP redesigned its entire Human Resource Strategy, which included

strengthening of Performance Management System, launching of a New Compensation and

Benefit Structure and Voluntary Separation Scheme. Further, to cope with changing

environment of financial sector, a change management exercise has been planned at other

subsidiary of SBP i.e. SBP-BSC.

Four clusters formulated are following; 1. Banking Cluster 2. Monetary Policy & Research (MPR) Cluster 3. Financial Market & Reserve Management (FMR) Cluster 4. Corporate Services (CS) Cluster

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Strategic and CORPORTATE PLANNING Department

Such giant entity having wide range of activities to deal with, can not exist without a proper planning department and that is why SBP has a separate department that is totally dedicated to formulating of policies and planning, since its early days. With time this department has improved and today it has quite complex operations to deal with.

Vision: To continuously strive to align the SBP strategic and corporate objectives with the

developments in the market and the best practices followed by other central banks.

Mission: To act as process owner and facilitator for formulating and implementing SBP Strategic Plan,

Annual Business Plans and the Business Continuity Plan by developing a close coordination and liaison

with key internal, external and international Stakeholders

Departmental Objectives:

O Continuous development, implementation and review of SBP Strategic & Business Plans

O Perform the function of coordinating and collating the SBP Strategic Plan and the

O Business Plans while reporting to BOD on quarterly basis

O Playing the role of a coordinating office for developing the Financial Sector Road Map and its

implementation

O Coordination with International Financial Institutions (IFIs) such as WB, IMF, ADB and UNDP

O Ensure continuity of critical and time sensitive functions of SBP and prevention of major

disruption in the financial system through BCP.

O Coordinate, finalize and Publish SBP Annual Performance Review (Volume-II)

O Coordinate with Consultants for completion of External Stakeholders Survey

O Departmental Structure:

S&CP consists of three divisions and one service unit. A brief introduction of each is given as under:

1. Strategic Planning Division:

The purpose of strategic planning division is to facilitate the process of formulation, review and

implementation of SBP’s goals and objectives, in line with the fundamental mission on a regular basis.

Strategic plans would set the direction for the organization and would provide the framework for other

operational processes. Main responsibilities of the division include:

O Facilitation of the development of the Strategic Plan for State Bank of Pakistan.

O Review and monitor the implementation of the Strategic Plans on regular basis.

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O Facilitate the development of Financial Sector Road Map.

2. Co-ordination Division:

The purpose of establishing this division at S&CPD is to coordinate and facilitate with International

Financial Institutions and Multilateral Agencies on technical assistance programs. Besides, coordinate

with different departments of SBP on the preparation, finalization and implementation of their Business

Planning exercise. The main responsibilities of the Division include:

O Coordination with World Bank (WB), International Monetary Fund (IMF), United Nations

Development Fund (UNDP) and Asian Development Bank (ADB) Technical Assistance.

O Coordination with all the departments with regard to Business Planning.

O Coordinate the preparation of State Bank of Pakistan Annual Performance Review.

O Coordinate the Preparation / Formulation of Monthly Summary Report on various

Developments and Initiatives undertaken in various departments of State Bank of Pakistan.

O Coordinate with Consultants (Chartered Accountants) regarding the successful completion of

External Stakeholders Survey.

O Act as Coordination division on special topics as assigned by the Governor.

3. Business Continuation Planning (BCP) Division:

This Unit is responsible for Business Continuation Plan, which is an on-going process and Director

Strategic & Corporate Planning Department is also the BCP Coordinator for the bank. The BCP for

Departments and Offices are updated regularly. Moreover, in order to maintain high level of

readiness by Departments and Offices tests and rehearsals are conducted by them and reviewed by

this Unit. Responsibilities of the Division:

O Ensure Continuation of critical and time sensitive functions of SBP and prevent any major

disruption in financial system of the country in the face of a catastrophe caused either by

natural disaster, fire, civil strife, sabotage or an act of war.

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Information Technology and COMMUNICATION:

Banking sector in Pakistan is using information technology for its day to day banking activities

and communication purposes and SBP – the central bank of Pakistan is acting as a role model.

Trend of using information technology for communication purposes is on increasing trend and

efforts are being made by training department of State bank; so that this culture of using I.T in

communication and banking activities could be made more common. E-mails and online secure

data transfer is being frequently used now in between employees of SBP, working in different

field offices. Apart from that information technology is used to keep records, to share

information with external stake holders as well as for online banking. A department of

Information Technology has been established that is purely dedicated for improvement of

information systems and technology implementation in State Bank of Pakistan. In below a brief

introduction of department is given;

Department of Information Technology: Vision: To implement latest technology to keep SBP online with the domestic and international

financial industry, and other stakeholders in order to promote efficiency and stability in the

financial market.

Mission: To provide appropriate technical solutions to business requirements and develop state of

the art integrated systems that will facilitate internal and external stakeholders to acquire accurate

information in the most efficient manner.

Introduction: ISTD with its capabilities, methodologies, and experience aims at technological advancement in SBP,

focusing on solutions that intend to reduce operating costs, improve end-user performance, and

meet overall business goals.

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ISTD provides services and solutions to improve and strengthen SBP’s technology portfolio and

identify future requirements while catering to them as well. Besides providing these useful

resources; ISTD also focuses on safeguarding the information assets and relevant systems, critical to

SBP, through its Security plans and policies.

ISTD Divisions 1. In-house Development

a. Software development

b. Web development

2. Central Server

a. System Admin – UNIX

b. System Admin – Windows

3. Customer Support

4. Database Management

5. Network Management

6. Production Support

7. Administration

8. Director Section

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HUMAN RESOURCE Department:

Vision: To transform HR into a dynamic and leading department that is respected for its

professionalism by its stakeholders.

Mission: We are committed to excellence at acquiring, developing and retaining the right talent for SBP by: (i) Continuous innovation & improvement of the HR policies & procedures (ii) Providing effective facilitation and advisory services to line departments (iii) Efficient and timely delivery of HR services. Currently, Human Resources Department comprises of the following Divisions;

Ô Compensation & Benefits Division Ô Employee Relations Division Ô HRIS Division Ô Performance Management Division Ô Planning & Development Division Ô Recruitment Division

Brief functions of each Division are as under:

1. Compensation & Benefits Division: The Compensation & Benefit Planning Unit is responsible to carry out all activities related to developing best market strategies regarding compensation and benefits for our employees. Employee motivation & retention unit works on conducting motivation surveys and developing market based employee satisfaction & retention strategies.

2. Employee Relations Division: The Discipline & Litigation Unit deals with union matters, discipline issues & litigation processes. Further, the Employee Counseling Unit addresses employee grievances and counseling through behavior modification.

3. HRIS Division: This Division focuses on Oracle Human Resource Information System and to solve the issues in smooth implementation and management of HRIS. The employees Database Unit is responsible for maintaining & updating employee data and HR Broadcast of various messages/ circulars/ orders etc. for prompt communication to Bank’s employees. The Service Record & Compliance Unit maintain and update employees’ personal files, verify employees’ particulars, and ensure timely confirmation

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- MANAGEMENT REPORT ON STATE BANK OF PAKISTAN -

of eligible employees in the Bank’s service. HR Automation unit works for customization of Oracle HRMS with merging needs of HR processes.

4. Performance Management Division: The Performance & Reward Management Unit of this Division manages and implements PMS in the Bank, advice the annual merit increase, and facilitates the promotion process. The Career Development Unit caters to the manpower requirements of the Bank through internal transfer and posting, and to manage promotion process, seniority list of OG-2 & above officers of the Bank. The newly created Organizational Development Unit is a conscious effort to increase organizational efficiency through planned interventions.

5. Planning & Development Division: This division looks after the department’s Budget & Business Planning process through its Budget Management & Administration Co-ordination Unit. The Manpower Planning Unit is also a part of this Division, which is responsible to develop annual manpower plan for SBP, prepare job descriptions, and conduct job evaluation process. Further, this division is also responsible for catering to the training needs of HRD officers in co-ordination with the Training & Development Department.

6. Recruitment Division: This Division is responsible for attracting, selecting and recruiting the right people from the market.

State Bank of Pakistan is proud of its highly professional, transparent and objective approach in its

recruitment and selection processes. After applying the eligibility criteria, which depends on the Job

grade, a series of selection procedures are applied before hiring employees. Normally the

candidates go through the process of test, group discussion and interview. The Interview is

conducted by a team of internal as well as external professionals of the related area. Sophisticated

recruitment and selection tools like oracle based data management system; online application and

behavioral based interviewing techniques have been introduced.

1. Advertisement in News Papers for recruitment.

2. Only on Qualification basis.

3. 65% + academic record.

4. High communication skills.

5. Interview, Group discussions,.

6. Medical Test, Selection.

7. Top 60 go to NIBAF for further training (3-6 months).

8. Promotion on basis of abilities or improved Qualification.

9. Performance-based rewards.

Complete PROCESS

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TRAINING Department and NIBAF:

NiBAF and training department both work jointly for training of newly hired employees as well

already employed workers of State Bank of Pakistan. They design training programs for different

level of officers and workers. These training programs are usually started according to suggestions

of Human resource Department. Training programs are mostly held either at NIBAF camp or in

Karachi field office.

Different sorts of Training programs are held; some of them are listed below:

1. Joint Directors Training Program (mostly, For newly recruited OG4 and OG5 officers)

2. Training of Trainers

3. Training Program for Communication skills

4. Training Program for basic banking skills

5. Training program for bringing change in management system

SBP is also helping out private banks in human resource and training field, and Governor of State bank has recently announced to setup committees for following key areas of HR-related fields;

I. Recruitment II. Compensation & Benefits

III. Performance Management & Career Progression IV. Training & Development

V. Severance/ End of Service Each committee will be headed by a HR professional. Each sub-committee will co-opt 5 to 7

members, the best people who are available in the HR community/profession from any industry on

the basis of their possible contributions; to develop HR policy guidelines on the assigned topic and

present its recommendations to the State Bank and Banks HR Heads Forum. These committees will

thus help bank sector of Pakistan by providing them with useful guidelines.

Governor Announcement

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REWARD Recognizing PROGRAM at SBP: Recognizing the importance of employee recognition and reward as a tool to motivate employee as

well as to inculcate a positive, productive and innovative organizational culture, State Bank of

Pakistan has a program for Employee Recognition and Reward. This program is aimed at fostering a

culture of acknowledgement and appreciation amongst employees for introducing innovative

business practices, showing extra ordinary efforts for achievement of goals and enhancing Bank’s

corporate image. Using various methods of recognition ranging from simple “Thank you” letters to

elaborate celebrations and monetary rewards are part of this program.

Formally, the Employee Recognition Policy and Program encompasses four types of recognition levels, based on the achievement of the individuals/teams. These are: Level 1 - Individual Contribution Award: An informal way of recognition at individual level, which includes simple Thank you notes / emails / letters. Level 2- Departmental Commitment Award: includes a cash award of Rs. 5,000/-, a recognition certificate & department wide recognition. Level 3- Organization Competence Award: includes cash award of Rs. 15,000/-, a recognition certificate & shield and Bank wide recognition. Level 4- Excellence Award: includes cash awards of Rs. 30,000/-, a recognition certificate & shield and Bank wide recognition. In order to effectively realize the benefits of this highly beneficial program, all employees in general

and particularly departmental and divisional are encouraged to recognize employees who through

their effort promote organizational values or are high achievers on an ongoing basis to create an

environment of mutual support and respect. By adopting the practice of recognizing and

recommending each others positive behaviors for reward we will develop and achieve an

organization wide culture of mutual trust and appreciation which contributes towards making SBP a

better place to work with highly motivated employees proud of their association with the

organization.

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EXECUTIVE SUMMARY

State bank of Pakistan is central bank of Pakistan, which makes it central authority in

banking sector of Pakistan. It has various obligations like formulation of economic policies,

monitoring of banking sector, issuance of notes, providing banking services to Government

as well as other banks and many more. Mission of State bank of Pakistan is “to provide

excellent banking and financial services to stakeholders besides ensuring implementation of

SBP policies in order to command their trust and respect.”

Central Bank was established very soon after independence of Pakistan by father of

Nation, Quaid-e-Azam and was nationalized in 1974, after which scope of its functions and

activities was considerably enlarged. SBP was further divided in to two subsidiaries named

SBP-BSC and NIBAF in 2002. Currently it has 16 field offices working in different cities of

Pakistan and has over 28 departments to look after its wide range of functions.

State Bank of Pakistan is centralized in its organization and management, but recently it has

undergone number of programs to make itself more flexible in its management approach.

SBP is headed by Governor SBP. Managing director and Chief Managers of their respective

field offices are answerable to Governor SBP. Meetings are held on monthly basis to get

views of all employees on different problems and decisions of bank. SBP has made efforts to

make its decision making recently but setting up committees for different fields on different

levels. Human resource and training department is one of major strength of SBP. These

departments hire employees with very systematic procedure. NIBAF and Training

department not only conduct programs for newly hired employees but also initiate

programs to bring flexibility in management practices. I.T department works for better and

easily adoptable communication system in organization apart from maintaining and securing

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data. I.T department is also behind strong online banking system of SBP. Transparent

reward recognization program of SBP distinguishes it from other organizations. This

program encourages employees and motivates them by awarding them in different ways on

different levels.

HRM department, I.T department, Islamic banking system, banking services to Government

could be considered as strengths of SBP. It would not be false to state that SBP has played a

strong role in development of prospering banking sector of Pakistan. The positive is that

they are trying to bring even more improvements in their organization by introducing

different programs and establishing new departments. The only way for SBP from here is

forward!

-----------------------

30-10-2008

Governor Management Committee

Deputy Governor(Banking)

Deputy Governor(Corporate Services)

DirectorMuseum & Art Gallery

DirectorBusiness Support

Services

Chief Information Officer

Information Systems & Technology

Comptroller Finance(Financial Resources

Management)

DirectorPayment System

DirectorInternational Markets &

Investments

DirectorStatistics & Data

Warehouse

Director Finance

DirectorMonetary Policy

DirectorDomestic Markets &

Monetary Management

Executive Director(Financial Markets /

Reserve Management)

Corporate SecretaryCorporate

Secretary’s Office

State Bank of Pakistan - Revised Organization Structure

Executive Director(Development Finance)

DirectorAgriculture Credit

DirectorMicrofinance

Executive Director(Banking Supervision)

DirectorBanking

Surveillance

DirectorBanking

Inspection (On-site)

DirectorBanking Policy &

Regulation

Project ManagerRTGS Project

Director / Chief SpokesmanExternal Relations

Executive DirectorInternal Audit &

Compliance

Director/Head Treasury Operations

(Back Office)

Banking Cluster Financial Markets & Reserve Management Cluster (FMRM Cluster) Corporate Services Cluster (CS Cluster)Monetary Policy & Research Cluster (MPR Cluster)

Governor’s Office

Note: RTGS will be part of Payment Systems Department as a Division on completion of the RTGS Project.

Chief Economist *(Monetary Policy / Research)

DirectorHuman Resources

DirectorTraining &

Development

DirectorInfrastructure &

Housing Finance

Economic Advisor (Policy / Research)

DirectorEconomic Analysis

Executive Director(Banking Policy &

Regulation)

Special CounselGeneral Counsel’s

Office

DirectorOff-site

Supervision & Enforcement

DirectorResearch

DirectorFinancial Markets

Strategy & Conduct

Anti Money Laundering Unit

Chief Risk OfficerRisk Management

& Compliance

Governor’s Secretariat

DirectorExchange Policy

DirectorSmall Medium

Enterprise Finance

DirectorConsumer Protection

DirectorFinancial Stability

DirectorIslamic Banking

Group Head(Human Resources) IT & Museum Group

Chief LibrarianLibrary

“Report on Organization Structure of State Bank of Pakistan”

BS (Accounting & Finance) (2006-2010)

Department of Commerce – BZU Multan