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Chapter -1
INTRODUCTION
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CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF STUDY
Financial institutions operating in country are the strength of the economic growth of
the country. The Banking sector is one of the exampled of financial institution, which
can play a very vital role in the development of the over all economy of a country.
Banking sector has now become a very challenging field with the advent of modern
technology of in creased competition.
The role of banking sector is very important for the development of the
country but as for as Peshawar is concerned, the Banking sector has been
very advantageous to it, because of the huge amount of remittances from
abroad and other parts of the country.
This report attempts to present the study of National Bank focusing its
Peshawar city Branch. It is based my 06-weeks internship.
1.2 PURPOSE OF STUDY
The purpose of the study is to work in real life situation and learn banking
practice by doing. In this context its objectives are:
1. To analyze banking operations i.e. operational analysis, financial
analysis.
2. To develop concrete and feasible recommendations.
1.3 SCOPE OF WORK
The scope of this particular report confined to the National Bank NLI Market
Peshawar city Branch.This report may help students to understand the
banking activities 2
of NBP in our country and to evaluate the overall performance of NBP through
detail analysis of daily activities.
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I worked in different departments of NBP but my main focus was on
Cash department. This department deals with the acceptance of utility bills,
payment of cash, acceptance of treasury receipts and receipts of cash
deposits etc.
1.4 METHODOLOGY
During internship one needs to collect quality information about the
organization as much as possible. Following are the main sources from where
I collected the data.
1.4.1 Primary Data:
Data that have been originally collected and have not undergone any
statistical analysis I collected primary data for the report
1. Through personal observation
2. Through discussion with managers of different departments of Bank.
1.4.2 Secondary Data:
Data that have been undergone any statistical analysis and collected from
some previous data
1. Manual
2. Annual report
3. Internet
4. Documents published by the bank
1.5 SCHEME OF THE REPORT
I have divided my report into relevant chapters.
Chapter No 1: It includes background of study, purpose, scope of work, which
methodology is used for the collection of the data
Chapter No 2: It includes overview of the organization
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Chapter No 3: Its about the organizational structure
Chapter No 4: it includes critical analysis
Chapter No 5: consist of SWOT Analysis.
Chapter No 6: consist of the conclusion and recommendations based on
findings from the study.
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Chapter -2
HISTORY OF NATIONAL
BANK OF PAKISTAN
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CHAPTER 2
HISTORY OF NATIONAL BANK OF PAKISTAN
2.1 Brief History
National Bank of Pakistan (the bank) was established under the National
Bank of Pakistan Ordinance 1949 and is listed on all the stock exchanges in
Pakistan. Its registered and head office is situated at I.I.Chundrigar road,
Karachi. The bank is engaged in providing commercial banking and related
services in Pakistan (GOP) as agent to State Bank of Pakistan (SBP). The
bank operates 1,219 branches in Pakistan and 19 overseas branches. Under
a Trust Deed, the bank also provides services as trustee to National Bank of
Pakistan investment Trust (NIT) including safe custody of securities on behalf
of NIT. At the time of independence in 1947, Government of Pakistan decided
that Reserve Bank of India would act as the common monetary authority of
both countries up to September 1948. But this arrangement did not worked
due to certain reasons. In October 1947, there was fighting in Kashmir and
India refused to pay the share of Pakistan amounting Rs.550 million. Due to
Indian government attitude and role of Reserve Bank of India in creating
problems to cater to the banking needs of Pakistan. Government of Pakistan
established its own central bank SBP on 1st July 1948.
Soon after independence of Pakistan, most of our foreign trade was with India
and Britain. Britain and other countries of Commonwealth devaluated their
currencies. India also followed Britain and devalued her currency. They were
also compelling Pakistan to do so.
Stocks of jute in East Pakistan and that of cotton in West Pakistan were
accumulating. At that time to rescue the economy of the country, the
Government of Pakistan established National Bank of Pakistan under National
Bank of Pakistan Ordinance 1949. NBP acted promptly and advanced loans
to the farmers. National Bank of Pakistan was set up with authorized and
paid-up share capital of Rs.30 (M).
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The government held 75% of shareholding and remaining 25% of the share
capital was held by the private sector.
In 1952 NBP replaced Imperial Bank of India. Mr. Mumtaz Hassan as Acting
Governor of SBP negotiated this arrangement. In 1962 when Mr. MumtazHassan became MD (He had already served NBP for 10 years as its
Chairman or Government Director), at that time NBPs branches were
increased from 6 to 239 and deposits from Rs.5 core (50million) to 106 core
(1 billion & 60 million), profit from 0.3 million (3 lack) to 21 million (2.1 core)
and the staff increased from 380 to 7091 as compared to year 1949-50. In
December, 1966 its 600 th branches was opened raising the Deposits to 2.31
billion and staff to 14, 963. Up to 1965, the shareholders had received 225%
of their original investment.
In 1974 during the era of nationalization, different small banks including Bank
of Bahavelpure were merged in National Bank of Pakistan. In addition to this
Bank of Mehran and NDFC were merged in it. National Bank of Pakistan
maintains its position as Pakistan's premier bank determined to set higher
standards of achievements. It is the major business partner for the
Government of Pakistan with special emphasis on fostering Pakistan's
economic growth through aggressive and balanced lending policies,
technologically oriented products and services offered through its large
network of branches locally, internationally and representative offices.
2.2 NATURE OF ORGANIZATION
NBP is a financial sector of economy. It provides credit lines for project
financing like LMM and ISDA etc. it invest in government securities and
bonds. It keeps the deposits of the people and provides lockers and agency
services. It acts as an agent of the SBP. NBP performs some general
functions on behalf of the Government of Pakistan like distribution of salaries
to the government servants and payment of pensions to hundreds of
thousand of pensioners across the country.
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2.3. BUSINESS VOLUME
Assets Amount
Bank paid up capital Rs8969 millions
Net assets Rs102459218
Share capital Rs8154319
Reserves Rs15772124
Earning per share is Rs23.3
2.4 Products Line
2.4.1 Domestic Remittance Products
2.4.1.1 Demand Drafts
NBP offers safe, speedy and reliable way to transfer money through Demand
Drafts at very reasonable rates. Any person whether an account holder of the
bank or not,
Can purchase a Demand Draft from a bank branch. Amount is credited by
bank in the account only when the Demand Draft is crossed. The bank
charges for Demand Draft are given in the NBP Tariff circulated bi-annually.
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2.4.1.2 Travelers Cheques
Negotiability: Pak Rupees Travelers Cheques are a negotiable
Instrument.
Validity: There is no restriction on the period of validity.
Availability: At 700 branches of NBP all over the country.
Encashment: At all 400 branches of NBP
Limitation: No limit on purchase
Safety: NBP Travelers Cheques are the safest way to
Carry our money.
2.4.1.2 Pay Order
For transferring money within the City, NBP provides another product Pay
Order which is a secure and easy way to move money. And, as usual, NBPs
charges for this service are extremely competitive.
2.4.1.3 Mail Transfers
Move your money safely and quickly using NBP Mail Transfer service. And we also
offer the most competitive rates in the market. One of the requirements to affect
remittance through Mail Transfer is that the customer should be an Account Holder.
WAPDA is only one company in Pakistan which is exempted from any bank charges
on Mail Transfer of money. Otherwise, Bank charges a certain amount on for
effecting remittance through Mail Transfer. Bank Charges are announced through a
circular bi-annually.
2.4.1.4 Foreign Remittances
To facilitate its customers in the area of Home Remittances, National Bank of
Pakistan has taken a number of measures to:
1. Increase home remittances through the banking system
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2. Meet the SBP directives/instructions for timely and prompt delivery of
remittances to the beneficiaries.
2.4.1.4.1New Features:
The existing system of home remittances has been revised/significantly
improved and well-trained field functionaries are posted to provide efficient
and reliable home remittance services to nonresident Pakistanis at 15
overseas branches of the Bank besides Pakistan International Bank (UK) Ltd.,
and Bank Al-Jazira, Saudi Arabia.
1. Zero Tariffs: NBP is providing home remittances services without anycharges.
2. Strict monitoring of the system is done to ensure the highest possiblesecurity.
3. Special courier services are hired for expeditious delivery of homeremittances to the beneficiaries.
2.4.2 RETAIL BANKING PRODUCTS
2.4.2.1 NBP SAIBAAN: HOUSING FINANCE
In line with vision of President NBP, the Commercial & Retail Banking Group
at NBP has recently launched a housing finance scheme under the brand
name of NBP SAIBAN
This scheme covers all sections of the society with monthly income startingfrom as low as Rs.5000/- per month *(Conditions apply)
This retail/consumer financing product is branded as NBP Saibaan (Housing
for all), the scheme offers a maximum loan of Rs.10 million in accordance with
the debt burden criterion.
Loans are available
1. Home Construction,
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2. Home Purchase
3. And Home improvement. For Home improvement Loans the maximum
amount is Rs.2.00 Million.
Home Construction and Home Purchase loans can be repaid over a period of20 years, whereas the repayment period for Home Improvement loan is 15
years.
2.4.2.2 What Is NBP Saibaan?
NBP Saibaan is the most affordable House Financing Scheme. You can avail
now and repay over a 3 to 20 years period. Home purchase loans up to 10
million
1. Home reconstruction loans up to 10 million
2. Home improvement loans up to 2.0 million 3 to 15 years)
2.4.2.3 Why NBP Saibaan Affordable?
1. Easy installment
2. No surprises
2.4.2.4 Flexible
1. Mark-up choices
2. Grace period option
3. Convenient
4. Structured and programmed
5. Minimum approval and Disbursement timing
2.4.2.5 Required Documents
Applications Form along with
1. Two attested passport size Photographs
2. Two attested copies of your National Identity Card
3. Cheque for the processing charges
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2.4.2.6 Property Documents
Any title document available (other documents may be required) and for
Salaried Persons, Whose Salaries Are Disbursed Through NBP Branch
2.4.2.6.1 Employer Undertaking for remittance of salary at relevant NBP
branch for credit to customers account ( to be provided at a later
stage, format available at relevant branch)
1. Employee ID Copy attested by NBP Branch (where applicable)
2. Attested copies of last three (3) months salary slips
3. Attested copies of last three (3) months bank statements.
2.4.2.6.2 For Salaried Persons of MNCs and NBP Approved
Companies
1. Employer Undertaking duly attested by relevant NBP Branch, where
applicable (to be provided at a later stage, format available at
relevant Branch)
2. Attested copies of last three (3) months Salary Slips
3. Letter of Verification of Employment on Company
4. Letterhead mentioning the date of joining.
5. Attested copies of last three (3) months bank statements.
2.4.2.6.3 For Other Salaried Persons
1. Letter of Verification of Employment on Company Letterhead
mentioning the date of joining2. Attested copies of last three (3) months Salary Slips
3. Attested copies of last twelve (12) months bank statement.
4. Attested copies of last three (3) months paid bills for electricity and
telephone.
5. OR Copies of last (12) Twelve months credit card bills (which ever is
available)
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2.4.2.6.4 For Business Persons
1. Bank Certificate stating applicant maintaining Business Account andthe date of account opening.
2. Attested copy of latest Form 29 in case of Private or Public LimitedCompany.
3. Attested copy of Partnership Deed (where applicable)
2.4.2.6.5 For Self- Employed Persons
1. Attested copy of current professional associationmembership/practicing certificate.
2. Adequate proof of professional engagement like bank certificates
3. Attested copy of Partnership Deed (where applicable
4. Any other document may be required on case to case basis by thebank.
2.4.2.7 Mark Up Rates
2.4.2.7.1 Fixed Rate Option
1. Priced at 10 years PIB rates plus 3.5% with re-pricing after 10 years
2. (Subject to a minimum floor)
2.4.2.7.2 Variable Rate Option:-
1. SBP Discount Rate with 12 months re-pricing (subject to a minimumfloor)
2.4.2.7.3 Processing Fee
1. For government employees including NBP employees irrespective of
the finance amount Rs.500/
2. For Others
3. Financing below Rs.1 million: Rs.1000/-
4. Financing between Rs. 1 to 4 million: Rs.3000/-
5. Financing above Rs. 4 million: Rs.6000/-
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2.4.2.8 Who Can Apply
1. You are a Resident Pakistani national
2. You are aged between 21 and 62 years at the time of
application/disbursement of loan
3. You are a salaried person, self-employed professional or businessperson.
4. You have a Net Take Home income not less than Rs.5000/- per
month (Govt. and related organization employees) and Rs.10,000/-
per month (for other salaried class) Rs.15,000/- per month (for
business persons and self employed)
5. Your property is located in NBP approved localities
6. Your duration of service is: Two years for salaried and three years forSelf-Employed/Business Persons.
2.4.3 NBP ADVNANCE SALARY
National Bank of Pakistan is offering another Retail Banking product under the
brand name of NBP Advance Salary. NBP posted an exceptional growth in
NBP Advance Salary. Presently there are
Over 500,000 customers of this product. NBP is maintaining approximately
1.7 million salary accounts of government/semi-government employees. To
tap these potential borrowers, NBP introduced this product.
2.4.3.1 Eligibility
This product is for NBP account holders who are permanent employees of the
Federal, Provincial government, semi-government, autonomous, semi-
autonomous, local bodies and other government corporations including NBP
whose salaries are disbursed through NBP.
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The documentation is minimal and documentation formalities can be easily
fulfilled. The prospective customer has to submit following
documents/information before sanction/approval of loan:-
1. Loan Application Form
2. Attested copy of NIC
3. Two References (preferably account holder of the bank)
2.4.3.2 Maximum Amount of Advance
The maximum limit under NBP Advance Salary Scheme is 15 net take home
salaries or Rs 490,000/- whichever is lower.
2.4.3.3 Repayment
Repayment period is up to 5 years. Repayment under this scheme is only by
debit of the salary account (through direct debit system) i.e. the facility will be
repaid from the employees salary each month.
2.4.3.4 Sanction Power
Branch Managers can approve, sanction and disburse strictly in compliance
with the parameter of the scheme. Approval of higher amounts will be strictly
in compliance with business discretionary powers.
2.4.3.5 Enhancement
Whenever customer requests for enhancement in the limit then a freshapplication form and new documentation are required.
2.4.3.6 Other Features
1. Rate of mark-up is 13%
2. Minimum net take home salary of Rs 5,000 per month is required
3. Debt burden requirement is 33%
4. No processing charges, no collaterals, no guarantees, no insurance
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2.4.4 AGRICULTURAL FINANCE
NBP provides Agricultural Finance to solidify faith commitment and pride of
farmers who produce some of the best agricultural products in the World .
2.4.4.1 Agricultural Finance Services
I Feed the World program, a new product, is introduced by NBP with the aim
to help farmers maximize the per acre production with minimum of required
input. Select farms will be made role models for other farms and farmers to
follow, thus helping farmers across Pakistan to increase production.
2.4.4.2 Agricultural Credit
The agricultural financing strategy of NBP is aimed at three main objectives:-
1. Providing reliable infrastructure for agricultural customers.
2. Help farmers utilize funds efficiently to further develop and achieve
better production.
3. Provide farmers an integrated package of credit with supplies of
essential inputs, technical knowledge, and supervision of farming.
2.4.5 NBP KISAN DOST
The salient features of NBP Kisan Dost are as follows:-
1. Loan available for the farmers for production, development purposes
2. Loans are also available for purchase of tractors, for installation of
tube wells, for purchase of agricultural implements, micro loans, for
godown construction, for construction of fish pond, for livestock
farming, for milk processing, for cold storage, bio-gas plants etc
3. Mark-up rate is 11 % per annum4. Loans available at the farmers doorsteps
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5. Agriculture experts to guide farmers
2.4.6 Foreign Trade and Foreign Exchange
2.4.6.1 Letters of Credit
NBP is committed to offering its business customers the widest range of
options in the area of money transfer. If you are a commercial enterprise then
our Letter of Credit Service is just what you are looking for. With competitive
rates, security, and ease of transaction, NBP Letters of Credit are the best
way to do your business transactions.
2.4.6.2 Foreign Currency Accounts
NBP is facilitating its customers who are either sending remittances from
abroad or their near ones send money in foreign currency by opening foreign
currency accounts in US$, Pound Sterling etc.
2.4.7 General Banking
2.4.7.1 Short Term Investments
NBP now offers excellent rates of profit on all its short term investment
accounts. Whether you are looking to invest for 3 months or 1 year,
NBPs rates of profit are extremely attractive, along with the security and
service only NBP can provide.
2.4.7.2National Income Daily Account (NIDA)
The scheme was launched in December 1995 to attract corporate customers.
It is a current account scheme and is part of the profit and loss system of
accounts in operation throughout the country.
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2.4.8 Corporate/Commercial Finance
2.4.8.1WORKING CAPITAL AND SHORT TERM LOANS
NBP specializes in providing
1. Project Finance
2. Export Refinance to exporters
3. Pre-shipment and Post-shipment financing to exporters
4. Running finance
5. Cash Finance
6. Small Finance
7. Discounting & Bills Purchased
8. Export Bills Purchased/Pre-shipment/Post Shipment Agricultural
Production Loans.
2.4.9 MEDIUM TERM LOANS AND CAPITAL EXPENDITURE
FINANCING
NBP provides financing for its clients capital expenditure and other long-term
investment needs. By sharing the risk associated with such long-term
investments, NBP expedites clients attempt to upgrade and expand their
operation thereby making possible the fulfillment of our clients vision.
2.4.9.1International Banking
National Bank of Pakistan is at the forefront of international banking in
Pakistan which is proven by the fact that NBP has its branches in all of the
major financial capitals of the world. Additionally, we have recently set up the
financial institution Wing, which is placed under the Risk Management Group.
The role of the Financial Institution Wing is:-
To effectively manage NBPs exposure to foreign and domestic
correspondence manage the monetary aspect of NBPs relationship with the
correspondents to support trade, treasury and other key business areas,
thereby contributing to the banks profitability.
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Generation of incremental trade-finance business and revenues
2.4.9.2NBP offers:
1. The lowest rates on exports and other international banking products
2. Access to different local commercial banks in international banking
2.4.10 Student Loan Scheme
NBP is offering student loan which is interest free for financial assistance of
needy students who have good educational record. The scheme was
launched
in pursuance of announcement made by the Federal Finance Minister in his
budget speech for 2001-2002 in collaboration with Government of Pakistan
and major commercial banks including NBP. Under the scheme, financial
assistance is provided by way of interest free loans to meritorious students
who have financial constraints for pursuing their studies in scientific, technical
and professional education within Pakistan.
The scheme is being administered by a high powered committee comprising
Deputy Governor, State Bank of Pakistan, Presidents of Commercial banks
and Deputy Secretary, Ministry of Finance, Government of Pakistan.
2.4.10.1 Eligibility
Under the scheme the students are eligible to apply for loans provided:-
1. He/She has obtained admission on merit in the approved
Universities/colleges of the public sector.
2. He/She falls at the time of admission with the age bracket of
3. For Graduation (Not exceeding 20 years)
4. For Post-Graduation (Not exceeding 30 years)
5. For Ph. D (Not exceeding 35 years)
6. He/She has secured 70% marks in the last public examination
7. He/She has undertaken the study of the approved subject.
8. He/She is unable to pursue studies due to financial constraints.
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2.4.10.2 Types of Loan
The loan facility will be available for the entire duration of the study for:-
1. Schedule Fee (Paid directly to the university/college).
2. Boarding Expenses excluding meal charges (paid directly to the
university/college).
3. Procurement of textbooks-disbursed directly to the student.
2.4.10.3 Repayment
The maximum period of repayment of loan is 10-years from the date of
disbursement of first installment. The borrower shall repay the loan in monthly
installment after six months from the date of first employment or one year
from the date of completion of studies, which ever is earlier.
2.4.11 Employees Services Safety, Health and Welfare
National Bank of Pakistan is not only a commercial institution but also a
welfare institution, who always strive for the well being and welfare of theemployees and in this regard offers following benefits to its employees.
1. Pension, insurance, gratuity and provident fund facility
2. Free medical facility for self, family and parents.
3. Scholarships for children.
4. Housing facility in the shape of housing colony in the big cities.
5. School fees for the children.
6. Car loan, Computer loan and House loan facility at easy Installments.
7. Five bonuses and awards to all employees every year.
8. Market based salary structure and increase in the salary every year.
9. Establishment of NBP Staff Welfare Trust.
2.4.11.1 Staff Loan
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To motivate employees of the bank, NBP is offering different loan facilities at
subsidized rates. Following loan facilities are offered by the bank:-
1. Computer Loan
2. Motorcycle Loan3. Motorcar Loan
4. House Building Loan
5. Clean Running Finance
2.4.12 Motorcar Loan
2.4.12.1 Eligibility
All confirmed employees having service of 3 years can avail this loan facility.
2.4.12.2 Limit
Rs 350,000/- (for clerical/non-clerical staff)
Rs 422,000/- (for OG-3 to OG-1 Officers)
Rs 504,000/- (Above OG-1)
2.4.12.3 Rate of Interest
4 % per annum
2.4.12.4 Repayment
Loan is repayable in 10 years with equal monthly installments.
2.4.13 House Building Loan
2.4.13.1 Eligibility
All confirmed employees having service of 5 years can avail this loan facility.
2.4.13.2 Limit
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1. Minimum Rs 600,000/- (for clerical/non-clerical staff), if any
clerical/non-clerical staff having basic pay of above Rs 10,000/- then
can avail facility up to 100 basic pays.
2. 100 basic pays for all officers.
2.4.13.3 Rate of Interest
Loan amount upto Rs 600,000/- is interest free for all officers, and for loan
amount above Rs 600,000/- rate of mark-up is 3% per annum.
Repayment
Loan is repayable in 20 years with equal monthly installments.
2.5. COMPETITORS
The competitors of the National Bank of Pakistan are as follows:
1. Askari Bank
2. Habib Bank Limited
3. United Bank Limited
4. First Woman Bank
5. Muslim Commercial Bank
6. Bank of Punjab
7. Dubai Islamic Bank
8. National Savings
9. Allied Bank Limited
10. Saudi Pak Commercial Bank etc.
2.6 Work done by me in National Bank of Pakistan Peshawar
city Branch
There are 14 branches in Peshawar region and all the transactions of these branches
are handled by main branch. All the branches send there transaction summaries to
main branch on daily basis and main branch transfer these transactions into relevant
heads and send all government receipt and payments to state bank of Pakistan and
relevant departments of the government .
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2.7 Mission Statement
To be recognized as a leader and brand synonymous with trust, highest
standards of services, quality, international best practices and social
responsibility.
2.8 Vision Statement
To be the pre-eminent financial institution in Pakistan and achieve market recognition
both in the quality and delivery of service as well as the range of product offering.
2.9 Core Values
NBP aims to be an organization that is founded on:
Growth through creation of sustainable relationship with its customers.
1. Prudence to guide its business conduct.
2. A national presence with a history of contribution to its communities
2.9.1 NBP Shall Work to:
Meet expectations through market-based solutions and products.
Reward entrepreneurial efforts
1. Create values for all stakeholders.
We aim to be people who
2. Care about relationships
3. Lead through the strength of its commitment and willingness to excel.
Practice integrity, honesty and hard work. We believe that these are
measures of true success.
We have confidence that tomorrow we will be an organization maintaining the
trust of its stakeholders.
An innovative, creative and dynamic institution responding to the needs of the
internal and external Leaders in its industry environment.
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2.9.2 Code of Ethics and Practices
NBP is cognizant of the importance of code of ethics to deliver best services
to itscustomers and introduced Code of Ethics which lays down fundamental
principles of personal and professional conduct for all employees of NBP.These principles are as follows:-
1. Integrity
2. Confidentiality
3. Professionalism
4. Compliance
2.9.3Integrity
Employees are required to behave with integrity and honesty in their dealings
with customers and other parties with whom they interact and in respect of all
internal matters.
2.9.4Confidentiality
All employees have a duty to safeguard confidential information obtained inthe normal course of business and respect for customers private affairs which
requires the same care as does the protection of the banks funds or other
interests.
2.9.5Professionalism
All employees should carry out their duties in a professional and courteous
manner. Financial matters should be conducted in a prudent manner andmaintain maximum level of dignity when interacting with employees of
opposite sex.
2.9.6Compliance
All employees should be fully committed that all business decisions and
actions comply with all applicable laws and regulations.
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Chapter -3
ORGANIZATIONAL
STRUCTURE
CHAPTER 3
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ORGANIZATIONAL STRUCTURE
3.1 Organizational Structure of NBP
Organizational Chart
PRESIDENT
SENIOR EXECUTIVE VICE PRESIDENT
GRADE 22
EXECUTIVE VICE PRESIDENT
GRADE 21
VICE PRESIDENT
GRADE 20
ASSISTANT VICE PRESIDENT
GRADE 19
GRADE I OFFICER
GRADE 18
GRADE II OFFICER
GRADE 17
GRADE III OFFICER
(GRADE 16)
3.2. NUMBER OF EMPLOYEES:
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Table # 3.1
PERMANENT 1327
TEMPERORY /CONTRACTUAL BASIS 842
BANK OWN STAFF STRENGTH 1479
OUT SOURCED 2350
TOTAL STAFFF STRENGTH 16429
NUMBER OF EMPLOYEES IN PESHAWAR CITY
BRANCH
85
NUMBER OF EMPLOYEES IN PESHAWAR CITY
BRANCH
18
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Management Structure
Manager CreditProcessing
Manager CreditOperation
Chief OperationManager (CRA)
Chief Manager
ManagerFEX* Manager JB* Manager Admin
ManagerCompliance
FEX
ExportImportRemittanceF/C A/C
Inquiry
DepositsBillsClearingUtilitiesAccountsCash/ChestGovt. Collection
Reconciliation
DispatchDead StockSecurityStaff Welfare
Audit /Inspection
To sign all Br.Returns MoneyLaundering .etc
[Sections] [Sections] [Sections]
*FEX Foreign Exchange*JB Journal Banking
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3.3. MAIN OFFICES
The Head Office of the National Bank of Pakistan is at Karachi. NBP carries
on its business all the way through a wide set up of branches those are
situated in the country and out of the country very professionally and in pointof fact. All branches execute their functions under the rule of local Regional
Offices and regional offices are proscribed by the Head Office situated a
superb building in the heart of Karachis center.
NBP has a wide domestic and overseas branches.
19 Overseas Branches
4 Representative Offices
1 Subsidiary
1 Joint Venture
29 Regional Offices
1,219 Branches
130 Online Branches
4 Subsidiaries
Overseas Branches Domestic Branches
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3.4 Departments in a Branch of NBP
3.4.1 Cash Department
A department that deals with the real payment and receipts of cash is called
cash department.
This department is headed by a Head Cashier and is responsible for the
following duties.
1. Acceptance of utility bills.
2. Payment of cash.
3. Receipt of cash deposits.
4. Acceptance of Treasury receipts.
5. Custodian of Gold ornaments.
6. Custodian of Cash.
7. Custodian of all the Security Documents of the Branch.
8. Custodian of all the keys of the Bank Branch Office.
9. Liaising with the Passing Officers of both Current and PLS account
section of the branch.
10.Liaising with the Branch Manager and Operations Manager for the
availability of cash in the Branch.3.4.2Deposit Department
1. Current account section
2. PLS account section
3. MIS account section
4. TDR account section.
3.4.2.1 Current Account Section
1. Cheques are presented to the Posting Clerk on the counter.
2. He enters the cheques in the ledger and hand over the ledger to the
Passing Officer.
3. The Passing Officer passes the cheques and authenticates the
balances in the ledger.
4. Then enter the cheques in the payment side of his scroll and hand over
the cheques to the Cash department for payment.
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3.4.2.2 PLS Account Section
The PLS Section performs the same function as Current account Section but
separate scrolls are used by each section.
3.4.2.3 MIS Account SectionMIS stands for Monthly Income Scheme. This section performs the following
functions.
1. Offering a wide range of products for various time periods i.e. Ten
years, Five years, Four years, Three years, Two years, one year, Six
months, Three months, one months etc.
2. Procurement of deposit at different differential rates of profit and
issuance of MIS certificate
3. Encashment of MIS Certificates on eve of maturity.
4. Application of profit on monthly basis and crediting of profit to the
respective accounts of the MIS holders.
3.4.2.4 TDR Account Section.
TDR stands Term Deposit Receipt: this section performs the following job.
1. Offer various time based profit payment services to the purchasers of
the Term Deposit Receipts.2. Application of profit on the various TDR instruments
3. Encashment of TDRs on the maturities of the instruments.
3.4.3 Bills and Remittance Department
1. Issuance of Mail Transfer (MT)
2. Issuance of Telegraphic Transfer(TT)
3. Issuance of Demand Draft (DD)
4. Issuance of Term Deposit Receipt (TDR)5. Issuance of Payment Orders (PO)
6. Issuance of Call Deposit Receipt (CDR)
7. Payment of Demand Draft
8. Payment of Mail transfer
9. Payment of Telegraphic Transfer
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3.4.4Clearing/Collection Department
This department is headed by an officer in charge of the bank and has the
following functions.
1. Receipt of cheques for inward and outward clearing
2. Entry of cheques on the Transfer credit slips.
3. Signing of concerned officer on the Transfer credit slips and handing
over a subjoined of the slip to the customer.
4. Entry of cheques received for clearing in the subsidiary day book.
5. Stamping on the face and back of the cheques along with stamping on
the transfer credit slips
6. Endorsement signatures on the back of the cheques received for
clearing.7. Entry of all the cheques (Bank vise) in the Clearing Register and
preparation of summary along with the total amount of cheques to be
sent for clearing.
8. Preparation of clearing sheets with the signatures of the authorized
officer.
9. Putting of all the cheques in a bag with a seal.
10.Handing over the bag to the representative of the Clearing House.\
3.4.5 Credit/Advances Department
This department offers the following products:
1. House purchase/renovation/construction loans.
2. Fifteen advance salaries to the Govt. employees.
3. Demand Finance
4. Running Finance
5. Demand Loan
6. Small Finance
7. Small Loan
8. L.M.M.(locally Manufactured Machinery) loan
9. I.D.A Loan
10.Mortgage Loan
11.Cash Finance
12.Student Loan13.Marketing of Financial products of the bank.
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14.Liaising with the businessmen and industry.
15.Documentation of the pledged assets and Creation of charge
16.Disbursement of loans.
17.Application of mark-up
18.Recovery of loans.
19.Visit to the borrowers and checking of hypothecated stocks.
20. Preparation of State Bank of Pakistan Statements.
3.4.6 COMPLIANCE DEPARTMENT
This department is supervised by a Compliance Officer and has the following
duties.
1. Assuring of foolproof banking system.
2. Implementing an effective internal control within the branch.
3. Surprise checking of various jobs of the bank.
4. Coordination with the internal audit of the bank.
5. Coordination with the SBP audit.
6. Preparation of Remarks Sheets.
7. Preparation of Clearance Certificates.
8. Preparations of Daily Review Sheet.
9. (KYC) Know your customer implementation. Inspection of Branch
vouchers.
3.4.7Branch Operation
3.4.7.1NBP General Account
3.4.7.1.1Deposit AccountsUnder this heading we are describing the types of accounts in which the bank
receives money from general public at different rates of interest and differentterms and conditions. Now NBP has set a limit of amount that should be in
every account which is Rs.5000/-. By Discussion, we came to know that NBP
has made a rule to deduct Rs.50/- per month if the balance in an account is
less than Rs.5000/-. But, in case of students, widows, pensioners, and
salaried persons, there is no such deduction on balance.
Following are the most common types of deposit accounts opened in a branch
of NBP.
1. Current Account
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2. Perpetual Income Deposit Account.
3. PLS Term Deposit Account.
4. Monthly Income Scheme (MIS).
5. National Income Daily Account. (NIDA)
6. Call Deposit Account.
7. PLS Saving Account.
3.4.7.1.2 Accounts Payable1. Payment Order Accounts.
2. Drafts Payable Accounts.
3.4.7.1.3 Advances Accounts1. Cash Credit Account.
2. Finance against Imported Merchandise.
3. PLS Housing Finance Investment
4. Cash Finance Account.
5. Demand Finance Account
6. Running Finance Account.
7. Small Finance Account.
8. NBP Advance Salary.
9. NBP Cash against Gold.
3.4.7.1.4 Bills Discounted and Purchased1. Demand Drafts Purchased Account.
2. Protested Bill Account.
3. Home Remittances Payable Account.
4. Pak Travelers Cheque (TC) Purchased A/C.
5. Inland Bills Discounted.
6. Acceptance for Constituent Liability A/C.
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Chapter -4
CRITICAL ANALYSIS
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CHAPTER 4
CRITICAL ANALYSIS
4.1 Financial Analysis
The strength of any organization can be better judged by analyzing its
balance sheet and its other statements of accounts. The financial statement of
any organization shows the results of its operation and its position in
business.
National Bank of PakistanCondensed Interim Statement of Financial Position
As at March 31, 2011
(Un-Audited) (Audited)
(Audited)March
31 December 31 2011
2010Note-----------------
- (Rupees in '000) ----------------
ASSETSCash and balances with treasury banksBalances with other banksLandings to financial institutionsInvestmentsAdvancesOperating fixed assetsDeferred tax assets - -Other assets
993,784,513 1,035,024,680LIABILITIESBills payableBorrowingsDeposits and other accounts
Sub-ordinated loans - -Liabilities against assets subject to finance leaseDeferred tax liabilities - netOther liabilities
111,863,18722,237,0365, 588,765
270,490,544484,545,98827,353,0357, 004,66764,701,291
115,442,36030,389,66423,025,156
301,323,804477,506,564
26,888,2266,952,666
53,496,240
8, 543,27750,857,244
758,995,303-1 11,843-
52,750,194
8,006,63120,103,591
832,151,888-
106,704-
46,160,038
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871,257,861 906,528,852
NET ASSETS122,526,652 128,495,828
REPRESENTED BYShare capital13,454,628 13,454,628Reserves28,269,208 24,450,244Unappropriate profit56,228,928 65,857,438
97,952,764 103,762,310
Surplus on revaluation of assets - net of tax24,573,888 24,733,518
122,526,652 128,495,828
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The data of balance sheet and income statement give idea about firm position
but it is better judged by analysis. By comparing of degree of changes in
different items .the comparison shows the fluctuation in assets and liabilities
of business.
The financial statements of organization usually includes following:
1. Balance Sheet
2. Profit & Loss Account
3. Cash Flow Statement
4. Statement of Changes in Equity
These statements can be suitable to make an idea about business
performance. These statements have analyze two ways
1. Horizontal Analysis
2. Vertical Analysis
Horizontal Analysis:
Through this analysis we can check that what are changes with in years in the
items of balance sheet and profit and loss account. Last year become base
for next year. And change can be easily analyzed.
Vertical Analysis:In this analysis the percentage of each item of statement is calculated to total
and then the change in the percentages is checked with in year
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VERTICAL ANALYSIS
Balance SheetAs on 31st March
Table # 4.1
31stMarch
2011
31st
December2010
Evaluation
2010-2011
Assets
Cash and balance with treasurybanks
13.72% 14.66% Worse
Balances with other banks 3.36% 5.28% Worse
Lending to financial institutions 2.32% 2.36 Worse
Investments 25.79% 23.50 Good
Advances 56.32% 56.82% Worse
Other assets 7.02% 6.13 Good
Operating fixed assets 3.00% 3.33% Worse
Deferred tax assets 0.36% 0.44% Worse
Total Assets 112.89% 112.50% Good
Bills payable 1.26% 1.41 Good
Borrowings from financialinstitutions
5.37% 5.57% Good
Deposits and other accounts 86.084% 85.98% GoodLiabilities against assets 0.005% 0.003% WorseOther liabilities 5.008% 5.46% Good
Deferred tax liabilities _ _ sameTotal Liabilities 97.722% 98.41% Good
Net Assets 14.16 14.096 Good
Represented By
Share capital 1.28% 1.23% Good
Reserves 2.67% 2.24% Good
Unappropriated profit 7.27% 7.21% Good
Owners equity 11.23% 11.19% good
Surplus on revaluation of assets 14.16% 14.096% Good
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VERTICAL ANALYSISCondensed Interim Profit & Loss Account - (Un-Audited)
For the Three Months Ended March 31, 2011Table # 4.2
31stMarch2011
31st
December
2010
Evaluation2010-2011
Mark-up/return/interest earned 8.91% 8.38% GoodMark-up/return/interest expensed 4.67% 3.29% WorseNet mark-up/interest income 5.057% 5.098% WorseProvision against non-performingadvances
1.31% 1.46% Worse
Provision for diminution in the valueof investment
0.071% 0.051% Good
Bad debts written off directly _ _ SameNet mark-up/interest income afterprovision
3.75% 1.51% Good
Non Mark-Up/Interest Income
Fee, commission and brokerageincome
1.18% 1.10% Worse
Dividend income 0.23% 0.40% WorseIncome from dealing in foreigncurrency
0.48% 0.55% Worse
Other income 0.066% 0.17% WorseTotal non mark-up/interestincome
2.34% 2.26% Worse
Non Mark-Up/Interest Expenses
Administrative expenses 2.7% 2.5% WorseOther provision/write offs 0.13% 0.10% WorseOther charges 0.038% 0.080% GoodTotal non mark-up/interestexpenses
2.78% 2.73% Worse
Extra ordinary items _ _ sameProfit before tax 2.64% 3.16% Worse
Taxation current 1.12% 1.60% Good-prior year(s) (0.0059%) _ Worse-Deferred 0.48% 1.03% Good
Profit after tax 2.15% 2.13% GoodUnappropriated profit broughtforward
6.22% 6.23% Worse
Profit available for appropriation 8.48% 8.34% GoodEarning per share 16.92% 14.36% Good
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HORIZONTAL ANALYSIS
Balance SheetAs on 31st March
31stMarch2011
31stDecember
2010
Evaluation2010-2011
Assets
Cash and balance with treasurybanks
100% 108.75% Increase by8.75%
Balances with other banks 100% 74% Decrease by26%
Lending to financial institutions 100% 114% Increase by14%
Investments 100% 127% Increase by27%
Advances 100% 115% Increase by15%Other assets 100% 133% Increase by
33%Operating fixed assets 100% 103.8% Increase by
3.8%Total Assets 100% 115% Increase by
15%
Liabilities
Bills payable 100% 104% Increase by 4%Borrowings from financial
institutions
100% 119% Increase by
19%Deposits and other accounts 100% 116% Decrease by
16%Liabilities against assetssubject to financelease23068314
100% 167% Decrease by67%
Other liabilities 100% 106% Increase by 6%Deferred tax liabilities _ _ SameTotal Liabilities 100% 115% Increase by
15%
Net Assets 100% 117% Increase by17%Represented By
Share capital 100% 120% Increase by20%
Unappropriated profit 100% 117% Increase by17%
Reserves 100% 114% Increase by14%
Surplus on revaluation ofassets
100% 117% Increase by17%
Total 100% 117% Increase by17%
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HORIZONTAL ANALYSISCondensed Interim Profit & Loss Account - (Un-Audited)
For the Three Months Ended March 31, 2011Table # 4.4
31stMarch
2011
31stDecembe
r2010
Evaluation
2010-2011
Mark-up/return/interest earned 100% 127.90% Increase by27.906%
Mark-up/return/interestexpensed
100% 165.33% Increase by65.33%
Net mark-up/interest income 100% 103.77% Increase by3.77%
Provision against non-performing advances
100% 104.24% Increase by4.24%
Provision for diminution in thevalue of investment
100% 162.258% Increase by62.258%
Provision against off balancesheet obligations
100% 505.925% Increase by405.925%
Bad debts written off directly - - Decrease by77.09%
Net mark-up/interest incomeafter provision
100% 102.68% Increase by2.68%
Non Mark-Up/InterestIncome
Fee, commission and
brokerage income
100% 112.68% Increase by
12.68%Dividend income 100% 66.70% Decrease by33.30%
Income from dealing in foreigncurrency
100% 76.29% Decrease by23.71%
Other income 100% 44.34% Decrease by55.66%
Total non mark-up/interestincome
100% 115.90% Increase by15.90%
Non Mark-Up/InterestExpenses
Administrative expenses 100% 124.21% Increase by24.21%
Other provision/write offs 100% 83.04% Decrease by16.96%
Other charges 100% 55.13% Decrease by44.87%
Total non mark-up/interestexpenses
100% 120.57% Increase by20.57%
Extra ordinary items - -Profit before tax 100% 96.95% Decrease by
3.05%%Taxation current 100% 78.39% Decrease by
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21.61%-prior year(s) - - same-Deferred 100% (23.69%) Decrease by
76.31%Profit after tax 100% 117.8% Increase by
17.8%
Unappropriated profit broughtforward
100% 115.68% Increase by15.68%
Profit available forappropriation
100% 116.18% Increase by16.18%
Earning per share 16.92% 14.36% Increase by2.56%
4.2 Ratio Analysis
Ratio analysis includes method of interpreting financial ratios to access the
performance of any organization. The basic input to ratio analysis is profit and
loss account and balance sheet. Ration analysis of any organization is in
interest of its creditors, employees, shareholders and of its management as
well. Both existing and prospective customer are interested in the ratio
analysis of organization Ratio analysis is a valuable aid to management in the
discharge of its basic functions such as planning, forecasting, control etc.
these ratios describe the relationship with the functioning of the business and
helpful for controlling cost of goods manufactured. The great advantage of
ratio analysis is that it reduces raw data of widely varying magnitude to a
common comparative basis..
1. Net Interest Income to Gross Income:
It is the comparison of Net Interest income earned & the gross income by the
bank.
Net mark-up/ interestincome /Gross Income X 100
31ist MarchYear 2011
31istDecemberYear 2010
Net mark-up/ interest income 9,275,015 8,112,709
Gross income 12932348 12113184
Net interest income to gross
income
71.72% 66.97%
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Gross Income = Net interest income + Non- mark-up income
2011 9,275,015+3,657,333=12932348
2010 8,112,709+4,000,475=12113184
Comments:
The Net interest income to gross income is bad due to decrease in Income.
2.Risk Asset Turnover Ratio:
It is a comparison of Net Mark-up/ Interest after provisions & Risk assets
(Advances) of the bank.
Net mark-up/ interest after provisions / Risk assets (Advances)
Table # 4.6
31istDecemberYear 2010
31ist MarchYear 2011
Net mark-up / interest afterprovisions
9,275,015 8,112,709
Risk assets 1,389,285 1,942,426
Risk asset turnover ratio 6.67 times 4.17 times
Comments:
The Risk Asset Turnover Ratio of 2011is badas comparedto2010 due to
decrease in markup. Percentage of decrease in markup is more than risk
asset
3 .Operating profit Ratio
This ratio is a comparison of Operating Profit to markup/ Interest of the Bank
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Operating Profit / Markup Earned X 100
Table # 4.7
31istDecemberYear 2010
31ist MarchYear 2011
Operating Profit
37058030 38458048
Markup/ interest Earned
21,036,290 23,170,457
Operating Profit Ratio 60.81% 49.33%
Comments:
The operating Profit Ratio of 2011is badas compared to that of 2010 this maybe due to decrease in operating profit,
4. Net Profit Ratio before Tax:
Net profit before tax/Interest Earned X 100
Table # 4.8
31ist
DecemberYear 2010
31ist
MarchYear 2011
Net profit before tax
6,303,579 6,352,686
Interest Earned
21,036,290 23,170,457
Net Profit Ratio before Tax 29.96% 27.41%
Comments:
In years 2011 it has decrease up to 27.41%from 29.96%in year 2010. This
decrease in profit shows the satisfied performance of the bank.
5 Net Profit Ratios after Tax
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Net profit after tax/Interest Earned X 100
31ist DecemberYear 2010
31ist MarchYear 2011
Net profit after tax
4,215,767 4,220,174Interest Earned
21,036,290 23,170,457Return on assts 20.04% 18.21%
Comments:
This ratio also decreased up to a great extent so it shows than an
organization is expenses on its assets after meeting all expenses and
obligations.
6. Return on Total Assets
Net Profit after Tax/total assets X 100
31ist DecemberYear 2010
31ist MarchYear 2011
Net Profit after Tax
4,215,767 4,220,174Total assets 1,035,024,680 993,784,513
Return on Total Assets 0.40% 0.42%
Comments:
This ratio also increased up to a great extent so it shows that an organization
is earning on its assets after meeting all the expenses and obligations.
7 Returns on Share Capital:
Net profit after tax/Share Capital X 100
31ist DecemberYear 2010
31ist MarchYear 2011
Net profit after tax
4,215,767 4,220,174Share Capital 13,454,628 13,454,628
Return on Share Capital 31.33% 31.36%
Comments:
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The ratio has decreased in year 2011 which shows that NBP has negative
trend of earning on share capital.
8. Return on Deposit:
Net profit after tax/Deposits X 100
31ist DecemberYear 2010
31ist MarchYear 2011
Net profit after tax
4,215,767 4,220,174Deposits 832,151,888 758,995,303
Return on Deposits 0.50% 0.55%
Comments:
By analyzing, I analyze that the ratio has increased in Year 2011
which shows that bank is in good position.
9. Solvency Ratio:
Total Assets/Total Liabilities-Issued Capital
31ist DecemberYear 2010
31ist MarchYear 2011
Total assets 1,035,024,680 993,784,513
Total Liabilities-Issued
Capital
906,528,852-
13,454,628
893074224
871,257,861-
13,454,628
857803233Solvency ratio 1.15 times 1.16 times
Comments:
This ratio shows that the asset of bank has increased as compared to
liabilities of bank. This shows the better position of the business.
10. Advances to Deposits ratio:
Total advances/total Deposits X 100
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31ist DecemberYear 2010
31ist MarchYear 2011
Total advances 477,506,564 484,545,988
Total Deposits 832,151,888 758,995,303
Total advances/total Deposits X 100 57.38% 63.84%
Comments:
The NBP has ratio of 63.84%in year 2011 as compare to 57.38%in year 2010.
The increase in ratio is due to increase in promotion of short term as well as
long term advances
11. Deposits to Capital:
Total Deposits/Share Capital
31ist DecemberYear 2010
31ist MarchYear 2011
Total Deposits 832,151,888 758,995,303
Share Capital 13,454,628 13,454,628
Total Deposits/Share Capital 61.84% 56.41%
Comments:
I analyze that NBP has negative trend of deposits to capital ratio from year
2010 to year 2011.
12. Total debts to Total Assets ratio:
Total debts/Total assets X 100
31ist DecemberYear 2010
31ist MarchYear 2011
Total debts 20,103,591 50,857,244
Total assets 1,035,024,680 993,784,513
Total debts/Total assets X 100 1.94% 5.11%
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Chapter -5
SWOT ANALYSIS
Chapter 5
SWOT ANALYSIS
5.1 STRENGTH
The main strength of NBP is that it is a government owned institution andenjoys the following edges over other banks.
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1. Custodian of government treasury
2. Working as agent of SBP
3. Job security for employees
4. Main custodian of public money
5. Government business owner
6. Lender to the government agencies
7. Blind limitation of public over NBP as government bank(PUCCA BANK)
8. Negotiator with the international institution on behalf of government
9. World wide network of branches
10. Lender to the public based projects.
5.2 WEAKNESSES
Beside a public bank it has the following weaknesses.
1. The general outlook and interior layout of branches are not as required
according to modern banking.
2. NBP has not fast service to the clients.
3. Lethargic and rude attitude of employees towards customers.
4. Less marketing expedition
5. No innovation and new products
6. Worst conditions of branches.
5.3 OPPORTUNITIES
But the NBP has the following opportunities.
1. Can launch a marketing strategy to capture the business from its peer
banks.
2. Can be number one in Pakistan
3. Can offer new and innovative products to compete rest of the banks.
4. With proper planning can hunt more and more business from the public
and private sector as people still trust over it.
5.4 THREATS
Less qualified staff in NBP
1. Not fully computerized and on line banking facilities
2. Competition with foreign banks
3. Not following modern banking system
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4. Growth of mushroom banks.
5. Awareness of the public with the newly established banks.
6. Less participation in capital market activities
7. Use of traditional system of banking like ledgers and book keeping etc.
8. Political influence.
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Chapter -6
CONCLUSION
& RECOMMENDATION
Chapter 6
CONCLUSION & RECOMMENDATION
6.1 Conclusion
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From this SWOT Analysis we can conclude that beside the fact that National
Bank of Pakistan is a government based institution but in these days of
cutthroat competition it is not easy to survive without adopting modern
techniques and latest tools of sophisticated technology. Although National
Bank of Pakistan is a Government Institution, but in the modern era it has
achieved a destination where other competitive modern banks can simply
reach. From year 2001, The Bank has made a Hat Trick in winning
International Awards. That is why people have more trust in NBP and they
are willingly depositing their money in it without any threat. In last, National
Bank of Pakistan is a Government Institution, but in the modern era it has
achieved a destination where other competitive modern banks can simply
reach.
NBP is providing high standard and quality of services. They also take
part in social activities such as student loans, payment of pension to
pensioners, payment of salaries to government employees, advance salary to
their employees, agricultural finance to help farmers.
6.2 Recommendations
1. This is a computer era. With the use of computer we can increase our
efficiency N.B.P should computerize all its branches. By the use of
computer properly these branches can increase there working
efficiency.
2. N.B.P. as public service oriented institution has to create business
opportunities for themselves. Now a day there is a competition
between the banks.
3. Central Asian Republics have great opportunities of new business so
N.B.P should open new branches in these Republic.
4. Model Banks like City Bank M.C.B. are using media very effectively to
increase the business of banks. So N.B.P should use electronic media
for its business developments.
5. The interference of union in banking business should be minimized as
it decreases the working efficiency of the employee as well as the
bank.
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6. The working of the Lahore Cantt. Branch Lahore is satisfactory but still
these working efficiencies are for from the standard of modern banking
system.
7. The bank should finance its loans in those projects, which are meeting
the required standard and should avoid the political pressure
8. The bank should bring forward the new talent as fresh knowledge and
education is considered very important to increase the efficiency and
production.
9. Keeping in view the hard work by the staff members at all levels of
management, staff should be given bonus and increment every year.
10.CREDIT CARDS are issued by the different banks like MCB, ABP and
City Bank etc. but NBP dont issued this type of finance scheme, there
is a place for this type of scheme in this bank.
Bibliography
1. NBP (2010-2011),Annual Report.
2. Siddiqui, M.A 1995a, credit distribution & agricultural development in
Pakistan:
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3. 27 (3): A problem of across to credit. Journal of Rural Development &
administration
4. Siddiqui, M.A. 1996. Alternative credit policies for agricultural
development: Case for participatory investment. Journal of Rural
Development & administration 28 (2): page 112.
5. www.nbp.com.pk
6. Zahid Elahi 2003, major work on economic development &
employment. Attached with the Association for creation of employment
acts.