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Under the Companies Ordinance 1984 the SME Bank was formed and incorporated as a public limited company. The main shareholder of SME bank is government. According to the government program for restructuring of financial sector Small Business Finance Corporation (SBFC) and Regional Development Finance Corporation (RDFC) were blended into SME Bank Ltd effective January 1, 2002. Their main target is to develop and strengthen small medium enterprises by giving them important financial and technical support due to which it helps in increasing the GDP of the country.