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Act No Act No. XXII of 1948 Banking Companies (Control) Act. 1948. An Act to Provide for the control of banking companies by the State Bank of Pakistan, Whereas it is expedient to provide for the control of banking companies by the State Bank of Pakistan ; It is hereby enacted as follows : 7. Restriction on loans and advances.-(1) Notwithstanding anything td' the contrary contained in section 54A of the Indian Companies Act VII of" 1913 no banking company shall make any loans or advances on the security of its own shares or grant unsecured loans or advances to any of its directors or to finis or private companies in which it or any of its directors is interested as partner director or managing agent, or to any individuals, firms or private companies in cases where any of the directors is a guarantor. (2) Every banking company shall, before the close of the month succeeding that to which the return relates ' submit to the State Bank a return in the prescribed form and manner, showing particulars of all unsecured loans and advances granted by it to companies, other than private companies, in which it or any of its directors is interested as director or managing agent or guarantor. (3) If on examination of any return submitted under sub-section (2). it appears to the State Bank that any loans or advances referred to in that sub-section have been granted to the detriment of the interests of the depositors of the banking company, the State Bank may, by order in writing prohibit the banking company from granting any further such loans or advances or impose such restrictions on the grant thereof as it thinks fit, and may, by like order, direct the banking company to secure the repayment of any such loans or advances within such time as may be specified in the order.